stocks turned sharply lower ahead of Friday's open, after Treasury
yields sank in the wake of a much weaker-than-expected May jobs report.
The SPDR Financial Select Sector ETF
slumped 1.6% in premarket
trade, after trading up 0.1% before the jobs report was released. Among
the ETF's more heavily-weighted components, shares of J.P. Morgan Chase
shed 1.8%, of Bank of America Corp.
lost 2.8%, of Citigroup Inc.
slid 2.8%, of Wells Fargo & Co.
declined 1.7% and of Goldman Sachs Group Inc.
gave up 1.9%. The yield on the
10-year Treasury note dropped 6.7 basis points to 1.744%, after the
Labor Department said only 38,000 new jobs were created in May,
below expectations of 155,000 jobs. Lower long-term yield can hurt bank
earnings as they compress margins banks earn on loans.