Financial stocks were taking a broad premarket beating Friday, as Treasury yields continued to tumble (Bank of America Corp. (BAC) shed 5.2%, Citigroup Inc. (C) slid 5.3%, Wells Fargo & Co. (WFC) declined 4.8% and Warren Buffett's Berkshire Hathaway Inc. (BRKA) gave up 3.1%. Futures for the S&P 500 slumped 2.9%. The yield on the 10-year Treasury note dropped 1.90 basis points to 0.736%, and hit a record intraday low of 0.714% earlier. Lower longer-term rates can weigh on bank earnings, as it narrows the spread they earn longer-term assets, such as loans, that are funded by shorter-term liabilities.) to record lows despite better-than-expected February jobs data ( ). The SPDR Financial Select Sector ETF (XLF) dropped 4.4%, putting it on track to open at a 1-year high. All of the ETF's components that have traded are losing ground. Among the most heavily weighted components, shares of J.P. Morgan Chase & Co. (JPM) lost 4.8%,
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 06, 2020 09:10 ET (14:10 GMT)
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