Financial exchange traded funds moved lower Monday morning and were the worst-performing sector ETFs after Citigroup (NYSE: C) analysts scaled back their second-quarter profit forecasts for several large banks.
Citigroup slashed its estimates for Morgan Stanley (NYSE: MS), Goldman Sachs (NYSE: GS) and JP Morgan (NYSE: JPM), according to reports.
Also Monday, PNC Financial Services (NYSE: PNC) fell nearly 3% after the lender said it will buy Royal Bank of Canada’s retail operations for over $3 billion.
The largest sector ETF by assets, Financial Select Sector SPDR Fund (NYSEArca: XLF), slipped 0.5% in recent action.
The fund was down 6.4% for the year-to-date period ended June 17, according to Morningstar, as large-cap banks have declined on economic worries and the potential impact of tougher capital rules.