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J.P. Morgan, Goldman Sachs stocks lead Dow losers as yields fall after disappointing jobs data

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Bank stocks took a dive in premarket trading Friday, as Treasury yields sank in the wake of disappointing government jobs data. J.P. Morgan Chase & Co.’s stock
JPM,
+0.34%

fell 1.6% to pace the Dow Jones Industrial Average’s
DJIA,
+0.66%

early decliners, followed by the 1.4% drop in Goldman Sachs Group Inc.’s stock
GS,
+1.34%
.
The implied price declines of those two stocks would shave about 50 points off the Dow’s price, while Dow futures
YM00,
+0.79%

declined 16 points, or 0.1%. Elsewhere, shares of Bank of America Corp.
BAC,
+0.40%

were down 1.7%, Citigroup Inc.
C,
+0.40%

shed 1.4% and Wells Fargo & Co.
WFC,
-0.19%

gave up 1.3%, while the SPDR Financial Select Sector ETF
XLF,
+0.53%

was down 1.1%. The yield on the 10-year Treasury note
TMUBMUSD10Y,
1.577%

dropped 4.7 basis points to a 2-month low of 1.515%, after the U.S. added a lot less jobs than expected and the unemployment rate surprisingly rose. Lower longer-term interest rates can hurt bank profits, as it narrows the spread they can earn on longer-term assets, like loans, that are funded with shorter-term liabilities.

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