NEW YORK (MarketWatch) — Financial stocks slipped on Wednesday as private-sector jobs disappointed economists, coming in lower than expected. The Financial Select Sector SPDR Fund (XLF) , which tracks financial stocks in the S&P 500 (SPX) , fell 0.8%.
Morgan Stanley (MS) slipped nearly 0.1%, bouncing back from earlier lows. Goldman Sachs Group Inc. (GS) rose more than 0.2% in early trading. Citigroup Inc. was up more than 0.8%.
/quotes/zigman/190927/quotes/nls/bac BAC 14.08, +0.18, +1.26% Bank of America Corp.
Bank of America Corp. (BAC) jumped more than 1.2%. J.P. Morgan Chase & Co. (JPM) turned positive, up 1.4%, after being in the red in early trading.
President Obama was meeting with the CEOs of Wall Street's biggest banks. The U.S. is in its first government shutdown in 17 years after Republicans and Democrats could not agree to terms of funding the government. The meeting also comes as Washington is getting ready for a fiscal showdown over raising the debt ceiling.
Members of the Financial Services Forum, a group that represents the heads of Wall Street's biggest institutions, will be in attendance., including Goldman Sachs CEO Lloyd Blankfein and J.P. Morgan CEO Jamie Dimon. The group will also meet with Treasury Secretary Jack Lew.
Here's the roundup of news on Wall Street:
Wells Fargo & Co. (WFC) is the target of a lawsuit by New York state's top prosecutor, who alleges violations of a mortgage settlement, according a report in the New York Times. Attorney General Eric Schneiderman has accused the largest U.S. mortgage lender of not following the terms of a multibillion-dollar settlement reached in 2012 targeting foreclosure abuses.
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Shutdown may not end soon Senate Republican leaders and Democratic aides send a message: Don't expect the government shutdown to end soon. Photo: Getty.
U.S. home mortgage applications dropped in the past week, according to the Mortgage Bankers Association. The last report shows demand for loans dropped more than refinancing activity.
Seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, slipped 0.4 % in the week ended September 27, according to MBIA.
Third-quarter bank results are scheduled to start Oct. 11 with Wells Fargo & Co. and J.P. Morgan kicking the week off, but warnings from analysts on weak trading revenue, declining mortgage activity and increasing legal costs could put a damper on the results and possibly lead to job cuts in the sector, according to a report in The Wall Street Journal.
Several analysts have cut earnings estimates in recent weeks. Citigroup., Bank of America, Morgan Stanley and Goldman Sachs earnings are due out the following week.
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