Financial ETFs Lose on Weak Jobs Data

Financial ETFs are selling off after initial jobless claims unexpectedly rose.
Author:
Publish date:

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) - Get Report

shedding 0.6% to $23.07. Its top holdings include

U.S. Bancorp

(USB) - Get Report

down 1.1%, and

PNC Financial Services

(PNC) - Get Report

, down 0.3%. The

SPDR KBW Regional Banking ETF

(KRE) - Get Report

, 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) - Get Report

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) - Get Report

, 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) - Get Report

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.

Copyright 2010 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.