Financial Stocks Rise As Upbeat Jobs Data Helps Support Treasury Yield Gains

Financial stocks were broadly higher Friday, as a rise in Treasury yields following data showing the economy added more jobs than expected provided a boost. The SPDR Financial Select Sector ETF rose 0.5% in premarket trade. Among some of ETF's more heavily weighted components, shares of Bank of America Corp. climbed 0.9%, J.P. Morgan Chase & Co. gained 0.9%, Goldman Sachs Group Inc. tacked on 0.7%, Citigroup Inc. advanced 0.8% and Wells Fargo & Co. added 0.4%. The yield on the 10-year Treasury note rose 1 basis point to 2.380% toward a two-month high, after data showing nonfarm payrolls increased by 222,000 in June, beating expectations of a 180,000 increase. A rise in longer-term yields can help boost banks' profits by increasing the spread they earn between longer-term assets, such as loans, and shorter-term liabilities. The financial ETF has gained 7.0% year to date through Thursday, while the S&P 500 has advanced 7.6%.