Financial stocks fall in face of stock market’s rally, as Citigroup and Schwab help drag the sector down

/ / News

Financials were the only sector not participating in the broader stock market rally, as selloff in shares of Charles Schwab Corp. and Citigroup Inc. dragged the group down. The SPDR Financial Select Sector ETF slipped 0.4% in morning trading, with 37 of 66 equity components trading lower, while the S&P 500 rose 0.9%. Citigroup’s stock sank 4.0% to pace the decliners, adding to the 5.6% drop on Monday, to put it on track to close at a 4-month low. The stock sold off Monday after The Wall Street Journal reported that regulators were preparing to reprimand the bank for failing to improve its risk-management systems, which comes after the bank mistakenly made a $900 million payment to creditors of Revlon Inc. . The WSJ report said being in regulators’s crosshairs helped accelerate the retirement plans of Chief Executive Michael Corbat. Meanwhile, Schwab’s stock slid 3.0% after the discount broker provided a downbeat revenue outlook. Among other more-active components of the financial ETF, shares of Bank of America Corp. lost 1.6% and J.P. Morgan Chase & Co. slid 1.4%, while Wells Fargo & Co. gained 0.5%
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit for more information on this news.