Financials were the only sector not participating in the broader stock market rally, as selloff in shares of Charles Schwab Corp. (SCHW) and Citigroup Inc. (C) dragged the group down. The SPDR Financial Select Sector ETF (XLF) slipped 0.4% in morning trading, with 37 of 66 equity components trading lower, while the S&P 500 rose 0.9%. Citigroup's stock sank 4.0% to pace the decliners, adding to the 5.6% drop on Monday, to put it on track to close at a 4-month low. The stock sold off Monday after The Wall Street Journal reported ( ) that regulators were preparing to reprimand the bank for failing to improve its risk-management systems, which comes after the bank mistakenly made a $900 million payment ( ) to creditors of Revlon Inc. (REV). The WSJ report said being in regulators's crosshairs helped accelerate the retirement plans of Chief Executive Michael Corbat ( ). Meanwhile, Schwab's stock slid 3.0% after the discount broker provided a downbeat revenue outlook ( ). Among other more-active components of the financial ETF, shares of Bank of America Corp. (BAC) lost 1.6% and J.P. Morgan Chase & Co. (JPM) slid 1.4%, while Wells Fargo & Co. (WFC) gained 0.5%
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 15, 2020 11:05 ET (15:05 GMT)
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