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.
金融股周三受到广泛打击，投资者对第一资本金融公司(Capital One Financial Corp.)第三季度业绩感到失望，基准美国国债收益率创下三个月来最大跌幅，拖累了该板块。SPDR Financial Select Sector ETF(XLF)在下午的交易中下跌1.2%，65个股票成分股中有57个成分股走低，而标准普尔500指数(S&P500)上涨0.2%。第一资本(Capital One)股价暴跌7.5%，追赶输家的步伐，尽管这家金融服务公司公布的第三季度收益高于预期，得益于7.7亿美元的准备金释放。如果剔除准备金释放，该公司将公布净利润下降，每股收益将减少约1.75美元。在其他权重较大的金融ETF成分股中，美国银行(Bank of America Corp.)股价下跌1.3%，摩根大通下跌1.9%，富国银行下跌0.4%，花旗集团下跌0.7%，高盛下跌1.0%。10年期公债收益率跌8.4个基点，报1.535，为7月19日以来最大单日跌幅，此前数据显示耐久财数据下滑。较低的长期收益率可能会侵蚀银行利润，因为这可能会降低银行的利差，因为它们用较短期的负债为较长期的资产(如贷款)提供资金。
-Tomi Kilgore
--托米·基尔戈(Tomi Kilgore)
译文内容由第三方软件翻译。
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