Replies to post #109257 on Coffee Sipping Big Board Stocks

[EZ2]

Bank stocks extend slide toward multiyear lows

MARKETWATCH 12:49 PM ET 2/9/2016

Financial-sector ETF heads toward lowest close since late 2013

Bank stocks extended their recent slide Tuesday, as growing concerns over the health of their European counterparts and falling bond yields sent many stocks toward multiyear lows.

The SPDR Financial Select Sector exchange-traded fund (XLF) lost 0.8% in midday trade, putting it on course to close at the lowest level since October 2013. It has skidded nearly 7% just this month, and 15% this year, compared with the S&P 500's year-to-date loss of 9.7%.

(https://w.graphiq.com/w/47NvvjWOSP3)

Of the ETF's 91 equity components, 34 have hit 52-week lows in intraday trade on Tuesday.

Deutsche Bank co-Chief Executive John Cryan tried to ease concerns about the German giant's finances, which have been pressured by litigation costs, negative interest rates, and plunging oil prices, saying the lender remained "rock- solid." (http://www.marketwatch.com/story/deutsche-bank-co-ceo-cryan-says-bank-rock-solid-2016-02-09)

(http://www.marketwatch.com/story/deutsche-bank-co-ceo-cryan-says-bank-rock-solid-2016-02-09) (http:// www.marketwatch.com/story/deutsche-bank-co-ceo-cryan-says-bank-rock-solid-2016-02-09)

Investors didn't seem to reassured, however, as Deutsche Bank's U.S.-listed stock (DBK.XE) slumped 3.8% to a record low on Tuesday, to stretch its year-to-date loss to 38%. Read more about the ominous selloff in European bank stocks (http://www.marketwatch.com/story/why-a-selloff-in-european-banks-is-ominous-2016-02-07).

Also weighing on the sector, the yield on the 10-year Treasury note (http://www.marketwatch.com/story/japans-10-year- bond-yield-turns-negative-2016-02-09) hit a low of 1.699% in intraday trade Tuesday, the lowest yield seen since Feb. 2, 2015. Falling Treasury yields means banks earn less from funding longer-term assets, such as loans, with shorter-term borrowings.

Don't miss: Bank stocks rocked by recession fears (http://www.marketwatch.com/story/bank-stocks-rocked-by-recession- fears-2016-02-03).

(http://www.marketwatch.com/story/bank-stocks-rocked-by-recession-fears-2016-02-03)"In volatile financial markets, there is not much for bank investors to embrace," said Mike O'Rourke, chief market strategist for JonesTrading in a note to clients. "The net interest margin compression weighs upon earnings prospects and concerns about credit losses become elevated."

(http://www.marketwatch.com/story/bank-stocks-rocked-by-recession-fears-2016-02-03) (http://www.marketwatch.com/ story/bank-stocks-rocked-by-recession-fears-2016-02-03)Among the XLF's more heavily-weighted components, Bank of America's stock (BAC) was the most active Tuesday on the New York Stock Exchange, with volume of about 110 million shares in the first 2 1/2 hours of trade. The shares, which were flirting with the lowest close since May 2013, slipped 0.2% on Tuesday, and have tumbled 27% year to date.

Citigroup Inc. shares (C) lost 0.8% and have plunged 28% this year, while J.P. Morgan Chase & Co.'s stock (JPM) shed 1.5%, and have dropped 16% in 2016.

Elsewhere, Berkshire Hathaway Inc.'s stock (BRKA) lost 0.7% in morning trade, and 4.7% this month. Wells Fargo & Co. shares (WFC) shed 0.1% on Tuesday, and were on course to close at the lowest level since March 2014.

-Tomi Kilgore; 415-439-6400; [e-mail]


(END) Dow Jones Newswires
02-09-161249ET
Copyright (c) 2016 Dow Jones & Company, Inc.

[**D*A**]

RIG- how low will it go?

IMO - at least one more dip.