NEW YORK (
) --Financial ETFs sold off on Friday after
Bank of America
(BAC - Get Report)
reported a decline in revenues across businesses, suggesting that loan demand is yet to rise and that the recovery was further away.
Uncertainty surrounding the impact of financial regulation on the large banks also weighed on the stocks. In addition, fresh data showed consumer sentiment took another step back in July, suggesting, once again, that economic recovery could be delayed.
Financial stocks were closing the day deeply in the red, with a few exceptions. Goldman Sachs
(GS - Get Report)
rose close to 5% on Friday morning bit gave up most of its gains by the end of the day, trading 0.9% higher at $146.50 towards the close. The stock gained on the back of news that the company had reached a $550-million settlement with the Securities and Exchange Commission.
(SCHW - Get Report)
was among the day's biggest gainers, rising 4.9% to $15.3. Brokerages and trading companies are faring better relative to large and regional banks.
iShares Dow Jones US Brokers-Dealers
is down 2.3%, but is among the best performers among financial ETFs. The fund counts Goldman Sachs,
(MS - Get Report)
and exchanges such as
(CME - Get Report)
among its top holdings.
International banking stocks fell as well, with the
iShares S&P Global Financial ETF
dropping 3.5%. The fund's top holdings include
The worst performers are ETFs tracking the KBW Banking Index and the KBW regional banking index. The
Regional Bank HOLDRS
was shedding 4.2% on Friday afternoon, while the
SPDR KBW Bank
was declining 4.5%.
-- Reported by Shanthi Venkataraman in New York.
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