Financial stocks suffer broad weakness as Treasury yields drop, Capital One's results disappoint investors
Financial stocks suffer broad weakness as Treasury yields drop, Capital One's results disappoint investors
Financial stocks took a broad hit Wednesday, as investor disappointment over Capital One Financial Corp.'s (COF) third-quarter results and the biggest drop in benchmark Treasury yields in three months acted as drags on the sector. The SPDR Financial Select Sector ETF (XLF) fell 1.2% in afternoon trading with 57 of 65 equity components trading lower, while the S&P 500 tacked on 0.2%. Capital One's stock tumbled 7.5% to pace the losers even after the financial services company reported third-quarter earnings that rose above expectations, helped by a $770.0 million reserve release. If the reserve release was excluded, the company would have posted a net income decline, and earnings per share would have been reduced by about $1.75. Among other more heavily weighted components of the financial ETF (XLF), shares of Bank of America Corp. (BAC) shed 1.3%, JPMorgan Chase & Co. (JPM) gave up 1.9%, Wells Fargo & Co. (WFC) fell 0.4%, Citigroup Inc. (C) lost 0.7% and Goldman Sachs Group Inc. (GS) gave up 1.0%. The yield on the 10-year Treasury note fell 8.4 basis points to 1.535%, the biggest one-day drop in yields since July 19, after data showing a decline in durable goods data. Lower long-term yields can eat into bank profits, as that can lower the spread banks earn as they fund longer assets, such as loans, with shorter term liabilities.
-Tomi Kilgore
Financial stocks took a broad hit Wednesday, as investor disappointment over Capital One Financial Corp.'s (COF) third-quarter results and the biggest drop in benchmark Treasury yields in three months acted as drags on the sector. The SPDR Financial Select Sector ETF (XLF) fell 1.2% in afternoon trading with 57 of 65 equity components trading lower, while the S&P 500 tacked on 0.2%. Capital One's stock tumbled 7.5% to pace the losers even after the financial services company reported third-quarter earnings that rose above expectations, helped by a $770.0 million reserve release. If the reserve release was excluded, the company would have posted a net income decline, and earnings per share would have been reduced by about $1.75. Among other more heavily weighted components of the financial ETF (XLF), shares of Bank of America Corp. (BAC) shed 1.3%, JPMorgan Chase & Co. (JPM) gave up 1.9%, Wells Fargo & Co. (WFC) fell 0.4%, Citigroup Inc. (C) lost 0.7% and Goldman Sachs Group Inc. (GS) gave up 1.0%. The yield on the 10-year Treasury note fell 8.4 basis points to 1.535%, the biggest one-day drop in yields since July 19, after data showing a decline in durable goods data. Lower long-term yields can eat into bank profits, as that can lower the spread banks earn as they fund longer assets, such as loans, with shorter term liabilities.
金融股週三受到廣泛打擊，投資者對第一資本金融公司(Capital One Financial Corp.)第三季度業績感到失望，基準美國國債收益率創下三個月來最大跌幅，拖累了該板塊。SPDR Financial Select Sector ETF(XLF)在下午的交易中下跌1.2%，65個股票成分股中有57個成分股走低，而標準普爾500指數(S&P500)上漲0.2%。第一資本(Capital One)股價暴跌7.5%，追趕輸家的步伐，儘管這家金融服務公司公佈的第三季度收益高於預期，得益於7.7億美元的準備金釋放。如果剔除準備金釋放，該公司將公佈淨利潤下降，每股收益將減少約1.75美元。在其他權重較大的金融ETF成分股中，美國銀行(Bank of America Corp.)股價下跌1.3%，摩根大通下跌1.9%，富國銀行下跌0.4%，花旗集團下跌0.7%，高盛下跌1.0%。10年期公債收益率跌8.4個基點，報1.535，為7月19日以來最大單日跌幅，此前數據顯示耐久財數據下滑。較低的長期收益率可能會侵蝕銀行利潤，因為這可能會降低銀行的利差，因為它們用較短期的負債為較長期的資產(如貸款)提供資金。
-Tomi Kilgore
--托米·基爾戈(Tomi Kilgore)
譯文內容由第三人軟體翻譯。
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