Financial Stocks Extend Losses Premarket After Jobs Data
Financial stocks extended losses in premarket trade Friday, after data showing August job growth was less than expected. The SPDR Financial ETF dropped 1.5%, after being down less than 1% right around when the jobs report was released. Among the ETF's most heavily-weighted components, shares of Wells Fargo & Co. fell 1.2%, Berkshire Hathaway Inc. lost 0.8%, J.P. Morgan Chase & Co. gave up 1.2%, Bank of America Corp. declined 0.8% and Citigroup Inc. shed 1.1%. Banks can benefit from higher interest rates, as it increases the spread they earn between what they borrow to fund longer-term loans. The XLF has lost 6.3% over the past three months through Thursday, while the S&P 500 has declined 6.9%.
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