Jun
05
Banks Bear Brunt of Stock Retreat as S&P 500 Pares Most of Loss
By-
Insurers, lenders routed as lower rates damp profit prospects
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Weaker dollar lifts raw-materials, consumer staples shares
Hopes that financial stocks will break out of the their two-year funk took a hit while the rest of the market erased most an early loss after weakening employment spurred speculation the Federal Reserve will have to stand pat on interest rates.
A 1.4 percent selloff in financial shares in the S&P 500 Index caught off guard investors who anticipated that tighter monetary policy as soon as this summer would bolster the outlook for earnings at banks and insurers. Short interest on the most-traded financial exchange-traded fund slid to 1 percent of shares outstanding, down from a high of 7 percent in January, data compiled by Markit and Bloomberg show…
Banks Bear Brunt of Stock Retreat as S&P 500 Pares Most of Loss
