Financial stocks suffer broad weakness as Treasury yields drop, Capital One's results disappoint investors

Financial stocks took a wide deed Wednesday, arsenic capitalist disappointment implicit Capital One Financial Corp.'s COF, -7.26% third-quarter results and the biggest driblet successful benchmark Treasury yields successful 3 months acted arsenic drags connected the sector. The SPDR Financial Select Sector ETF XLF, -1.55% fell 1.2% successful day trading with 57 of 65 equity components trading lower, portion the S&P 500 SPX, -0.35% tacked connected 0.2%. Capital One's banal tumbled 7.5% to gait the losers adjacent aft the fiscal services institution reported third-quarter earnings that roseate supra expectations, helped by a $770.0 cardinal reserve release. If the reserve merchandise was excluded, the institution would person posted a nett income decline, and net per stock would person been reduced by astir $1.75. Among different much heavy weighted components of the fiscal ETF (XLF), shares of Bank of America Corp. BAC, -1.75% shed 1.3%, JPMorgan Chase & Co. JPM, -2.10% gave up 1.9%, Wells Fargo & Co. WFC, -0.78% fell 0.4%, Citigroup Inc. C, -0.26% mislaid 0.7% and Goldman Sachs Group Inc. GS, -1.66% gave up 1.0%. The yield connected the 10-year Treasury note TMUBMUSD10Y, 1.542% fell 8.4 ground points to 1.535%, the biggest one-day driblet successful yields since July 19, aft information showing a diminution successful durable goods data. Lower semipermanent yields tin devour into slope profits, arsenic that tin little the dispersed banks gain arsenic they money longer assets, specified arsenic loans, with shorter word liabilities.