Financial exchange traded funds (ETFs) eased lower this week as investors have been less than enthused with how J.P. Morgan (NYSE: JPM) and Bank of America (NYSE: BAC) have started the earnings season for banks.
Bank of America before Friday’s opening bell reported lower quarterly earnings as its mortgage business weighed on results.
“The miss versus consensus was likely due to higher mortgage-related hits,” Deutsche Bank analysts wrote in a research note Friday. “Separately, Bank of America announced a new chief financial officer as the existing CFO is tending to a health-related family issue (but will remain as vice-chair).”
The financial-sector ETF also fell Wednesday following disappointing results from J.P. Morgan. The fund is down more than 3% over the past three months.
Bank of America is a top of holding Financial Select Sector SPDR Fund at 7% of assets. The ETF has fallen below its 50-day moving average, a closely watched technical indicator.
Financial Select Sector SPDR Fund
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