Bank of America, Citigroup, Bank ETFs Shed 2% in Sell-Off
May 13th 2011 at 1:03pm by John Spence
A bank ETF was down 2% on Friday as its losses were on par with the damage in shares of Bank of America (NYSE: BAC) and Citigroup (NYSE: C), which were under pressure to close the week on heavy trading volume.
Shares of Citi and Bank of America were down more than 2% as SPDR KBW Bank ETF (NYSEArca: KBE) was among Friday’s worst sector performers.
Challenges for bank stocks include a sluggish revenue outlook, an uncertain housing market, economic weakness and relative valuations that are at the high end of their historical range, Deutsche Bank analysts said in a note Friday.
Banks with mortgage-services business has been shaky this week on reports they’re trying to settle a probe into their foreclosure practices.
Although Bank of America has a “good underlying core business,” mortgages remain a “meaningful risk and ongoing drag to earnings,” the Deutsche Bank analysts said.
The bank ETF is on track for a loss of more than 2% this week and has fallen below its 50-day moving average.
SPDR KBW Bank ETF
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