Banking stocks fell Friday on mixed economic reports and ahead of the introduction of a bank reform bill.
The KBW Bank Index fell 0.9%, to 50.46.
Despite the drop, the index of 24 large and midsize banks rose 3.6% for the week, helped by speculation that Barclays PLC might buy a U.S. retail bank and Citigroup Inc.’s statement that it was headed toward sustained profitability.
The sector gave back gains after the February reading for University of Michigan consumer sentiment gauge fell unexpectedly. The news overshadowed a Commerce Department report that showed retail sales rose last month.
The weeklong rally also ended as investors awaited the unveiling Monday of a bank reform bill from Senate Banking Committee Chairman Chris Dodd. The Connecticut Democrat is determined to move forward on an industry overhaul without Republican input.
The Dow Jones industrial average rose 0.12% and the Standard & Poor’s 500 index fell 0.02%.
Bank of America Corp. fell 1.58%; JPMorgan Chase & Co., 0.07%; Wells Fargo & Co., 0.44%; and Citigroup Inc. fell 21 cents, or 5.02%.
In regional banking, Fifth Third Bancorp fell 0.98%; KeyCorp, 4.19%; PNC Financial Services Group Inc., 0.99%; M&T Bank Corp., 0.37%; and Zions Bancorp., 2.05%.
