An exchange traded fund indexed to U.S. banks was down over 2% on Monday following mixed quarterly earnings from bellwethers Citigroup (NYSE: C) and Wells Fargo (NYSE: WFC).
The $951 million SPDR KBW Bank ETF (NYSEArca: KBE) fell 2.3% at last check.
Wells Fargo shares slipped almost 6% after the bank’s third-quarter profit missed consensus estimates. Evercore Partners analysts blamed the miss on lower market-sensitive revenue and lower core mortgage banking results.
“Overall, it was a tough quarter for Wells Fargo’s [net interest]margin and we would expect the stock to be weak,” added Keefe, Bruyette & Woods.
Citi shares were fractionally positive after the company reported higher quarter earnings.
The bank ETF is trying to hold its 50-day moving average, a key technical indicator. JP Morgan kicked off bank earnings last week.