Exchange traded funds (ETFs) that invest in U.S. financial and banking stocks were down more than 1% in early trading Monday after Standard & Poor’s lowered its ratings outlook on the U.S. on worries over the debt.
Top holding Citigroup (NYSE: C) erased early gains Monday after the bank reported quarterly earnings. Citi’s profit beat by a penny a share but revenue missed analyst forecasts, WSJ MarketBeat reported.
The ETF traded lower Monday while the Dow shed over 200 points after S&P’s ratings move.
Headline risks such as a recent Senate-panel report blasting Goldman Sachs (NYSE: GS) and worries over the economy are also weighing on the sector funds.
Financial Select Sector SPDR Fund
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.