Financials Down As J.P. Morgan, BofA Warn On Trading - Financials Roundup

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Banks, lenders and other financial companies declined after two big banks warned of a slowdown in trading revenue in the latest quarter. J.P. Morgan Chase Chief Financial Officer Marianne Lake said at an industry conference that the bank's second-quarter trading so far is down about 15% compared with a year ago. Bank of America Chief Executive Brian Moynihan, speaking at a separate conference, said his bank's second-quarter trading revenue will be down slightly from a year earlier. Goldman Sachs shares came under pressure after reports that its asset-management arm purchased Venezuelan bonds, leading some critics to charge that it is supporting an oppressive regime. "For US equities to continue to rally, participation must broaden," said analysts at brokerage Barclays, in a research note. "With very little tax upside priced from a stock perspective, we still recommend positioning for a corporate tax cut, and now increasing value exposure. The prospect of tax language from Congress in June combined with FOMC and ECB meetings are key catalysts for the rotations."

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-Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

May 31, 2017 16:45 ET (20:45 GMT)