Financial exchange traded funds (ETFs) took a hit in midday trading after Bank of America (BAC) reported that its profit fell 77% in the first quarter.
It was worse than expected, as analysts had been anticipating a profit of 41 cents per share, reports Ieva M. Augstums for the Associated Press. Instead, it reported earnings of 23 cents per share, compared with $1.16 per share a year earlier. Bank of America’s stock was down 1.6% in midday trading.
The earnings report is weighing on the already troubled financial ETFs that count Bank of America as a major component.
- Regional Bank HOLDRs (RKH): Bank of America is 9.1% of the fund; down 7.3% year-to-date
- Financial Select Sector SPDR (XLF): BAC is 8.8%; down 8.8% year-to-date
- iShares Dow Jones US Financial Services (IYG): BAC is 11.7%; down 10.2% year-to-date
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