Financial Stocks Fall, But Outperform Broader Market

Financial stocks are falling in premarket trade Wednesday, in the wake of Donald Trump being elected president, but are outperforming the broader market as both the Senate and House of Representatives retained republican control. The SPDR Financial Select Sector ETF shed 1.5% ahead of the open, but that's less the 2% decline in the SPDR S&P 500 ETF . Among the financial ETF's most heavily weighted components, shares of Berkshire Hathaway Inc. dropped 1.6%, Bank of America Corp. slipped 0.3%, J.P. Morgan Chase & Co. gave up 0.8%, Wells Fargo & Co. lost 0.6% and Citigroup Inc. fell 1.1%. Analyst Keith Horowitz at Citigroup wrote in a note to clients Tuesday that a Trump victory increases uncertainty about policy, but republicans retaining the Senate would be a positive for the sector. The XLF has gained 3.3% year to date through Tuesday, while the S&P 500 has climbed 4.7%.