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Financial ETFs Lose on Weak Jobs Data

Financial ETFs are selling off after initial jobless claims unexpectedly rose.

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 iShares U.S. Regional Banks ETF Report

shedding 0.6% to $23.07. Its top holdings include

U.S. Bancorp

(USB) - Get U.S. Bancorp Report

down 1.1%, and

PNC Financial Services

(PNC) - Get PNC Financial Services Group Inc. (The) Report

, down 0.3%. The

SPDR KBW Regional Banking ETF

(KRE) - Get SPDR S&P Regional Banking ETF Report

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, 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 SPDR S&P Retail ETF 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 United States Oil Fund LP 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 United States Natural Gas Fund LP Report

was a prominent loser in Thursday trading, shedding 2.4% .

-- Reported by Shanthi Venkataraman in New York.

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