Citigroup (NYSE: C) shares rallied more than 2% Monday afternoon in the face of a down market after Standard & Poor’s warned on U.S. credit, but it wasn’t enough to put bank exchange traded funds (ETFs) into the green.
Citigroup was the most active stock on the NYSE after the banking giant said quarterly revenue rose from the year-ago period.
“Citi continues to make good progress in running off its problem asset pool … credit trends continue to improve and core businesses are OK,” Deutsche Bank analysts said in a research note Monday. They like Citi as a top pick among money-center banks as capital continues to build quickly and mortgage-related drags are less than at some other large peers, according to the report.
The SPDR KBW Bank ETF (NYSEArca: KBE) was off more than 1% Monday afternoon.
Financial-sector ETFs such as Financial Select Sector SPDR Fund (NYSEArca: XLF) fell last week after Bank of America (NYSE: BAC) and J.P. Morgan (NYSE: JPM) kicked off quarterly earnings for big banks.
Wells Fargo (NYSE: WFC) is scheduled to report on Wednesday.
Financial Select Sector SPDR Fund (NYSEArca: XLF)
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