Financial stocks followed the broader market down Wednesday on more dismal economic reports.
The KBW Bank Index closed down 0.13%, at 47.20, after swinging wildly throughout the day once fresh reports concerning employment and manufacturing indicated the recession is not quite over.
"We've had, obviously, a mixed bag of economic data to come out," said Peter Cardillo, chief market economist at Avalon Partners in New York. He said financial stocks "are pretty much down right now. I would imagine that they're following the rest of the market."
The markets opened down after a report from the payroll processing company Automatic Data Processing and Macroeconomic Advisors showed that U.S. employers had shed 254,000 jobs in August. Economists were expecting a decline of 240,000. The markets were also pressured by a surprising decline in the Chicago Purchasing Managers Index, to 46.1 in September from 50 in August. The index tracks Midwestern manufacturing activity. A reading of less than 50 signals a contraction of activity.
The Dow Jones Industrial Average fell 0.31%, and the Standard & Poor's 500 index 0.33%.
Several banking companies ended the day in the red.
JPMorgan Chase & Co. fell 2.36%; Wells Fargo & Co., 0.6%; Bank of America Corp., 1.4%; Marshall & Ilsley Corp., 2.54%; BB&T Corp., 0.87%, and Regions Financial Corp., 4.03%.
Gainers included PNC Financial Services Group Inc., up 1.25%; U.S. Bancorp., 0.51%; Fifth Third Bancorp, 1.91%, and Huntington Bancshares Inc., 7.05%.
