Stock Market News – J.P. Morgan, Goldman Sachs stocks lead Dow losers as yields fall after disappointing jobs data
Bank stocks took a dive in premarket trading Friday, as Treasury yields sank in the wake of disappointing government jobs data. J.P. Morgan Chase & Co.’s stock
fell 1.6% to pace the Dow Jones Industrial Average’s
early decliners, followed by the 1.4% drop in Goldman Sachs Group Inc.’s stock
The implied price declines of those two stocks would shave about 50 points off the Dow’s price, while Dow futures
declined 16 points, or 0.1%. Elsewhere, shares of Bank of America Corp.
were down 1.7%, Citigroup Inc.
shed 1.4% and Wells Fargo & Co.
gave up 1.3%, while the SPDR Financial Select Sector ETF
was down 1.1%. The yield on the 10-year Treasury note
dropped 4.7 basis points to a 2-month low of 1.515%, after the U.S. added a lot less jobs than expected and the unemployment rate surprisingly rose. Lower longer-term interest rates can hurt bank profits, as it narrows the spread they can earn on longer-term assets, like loans, that are funded with shorter-term liabilities.