Another Selloff Among Financials Makes Some Stocks Look Cheap

If the equity market is jittery, to use the pundits' mot du jour, then the bank-stock sector is an inconsolable and Prozac-immune bundle of nerves.

And, despite solid-looking fundamentals, financial stocks probably will remain in that wobbly state through next week, when more key economic numbers and third-quarter earnings are released, according to analysts and investors.

The KBW Bank Index, which tracks the shares of 24 large banks, was down 4% Friday afternoon. Among the institutions worst hit were Chase (CMB Quote), off 5.7%, J.P. Morgan (JPM Quote), down 4.5%, and KeyCorp (KEY Quote), down 4.5%. The index is down nearly 25% since its 1999 high, posted in April. ...