NEW YORK (TheStreet) -- Financial ETFs were prominent losers on Thursday after initial jobless claims unexpectedly rose to 479,000.
Stocks across sectors came under pressure on the weak job outlook. However, banking stocks suffered more as investors worry that continued weakness in the economy will translate into continued depression in loan demand. Buying in the second half trimmed losses, but most financial ETFs still finished in the red.
Regional banking ETFs took a knock, with the iShares Dow Jones US Regional Banks (IAT) shedding 0.6% to $23.07. Its top holdings include U.S. Bancorp (USB) down 1.1%, and PNC Financial Services (PNC), down 0.3%. The SPDR KBW Regional Banking ETF (KRE), which has a higher exposure to mid-cap regional bank stocks, was down 0.9%.
Weak job numbers was also bad news for consumer stocks. The SPDR S&P International Consumer Staples (IPS) is shedding 1.5%. Lackluster same-store sales drove the SPDR Retail ETF (XRT) lower by 0.7% in morning trading, but the ETF recovered some of its losses in the latter half, ending lower by 0.2%.Oil ETFs trended lower. The United States Oil Fund (USO), which tracks oil futures, is down 0.5% at $36.71. But it was rising slightly in aftermarket trading. The usually volatile US Natural Gas ETF (UNG) was a prominent loser in Thursday trading, shedding 2.4% . -- Reported by Shanthi Venkataraman in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV