BOSTON (MarketWatch) — Financial stocks slid with the broader market Friday as investors cringed at news that the U.S. economy had created far fewer jobs than expected in May.
XLF 13.49 , -0.52 , -3.71%
The Financial Select Sector SPDR Fund XLF -3.71% , which tracks financial stocks listed in the S&P 500 Index SPX -2.46% , fell 3.7% to 13.49. The Dow Jones Industrial Average DJIA -2.22% dropped 275 points, or 2.2%, to 12,118.57.
Amid the continuing gloom of the European credit crisis, investors were further spooked by news that the U.S. economy had only produced 69,000 new jobs in May, the smallest increase in about a year. Economists polled by MarketWatch had been expecting 165,000 jobs. Read more on jobs report.
Stocks have worst day of 2012
Simon Constable talks with Stephen Wood of Russell Investments about the disappointing May jobs report and the Dow's worst day of 2012. Photo: AP.
Shares of the four financial stocks listed in the Dow Jones Industrial Average finished decidedly lower. Bank of America BAC -4.49% fell 4.5% and Travelers Cos. TRV -3.06% slid 3.1%. American Express Co. AXP -4.30% dropped 4.3%, and J.P. Morgan Chase JPM -3.68% declined 3.7%.
According to The Wall Street Journal on Friday, the Commodity Futures Trading Commission has issued subpoenas as part of a probe into J.P. Morgan’s handing of certain derivatives trades that resulted in losses of more than $2 billion.
Discover Financial Services DFS -7.22% was the worst performer among S&P 500-listed financial stocks as its shares fell 7.2%. Following closely behind was Huntington Bancshares HBAN -6.57% , down 6.6%, and credit-card provider Capital One Financial Corp. COF -5.78% as its shares slumped 5.8%.
Federated Investors FII -5.62% shares fell 5.6%. Earlier Friday, analysts at Goldman Sachs lowered their rating on the stock to sell.