Financials Fall Alongside Treasury Rates -- Financials Roundup
Banks, lenders and other financial companies fell as Treasury rates continued to decline in the wake of the Federal Reserve's less aggressive than anticipated rate-hike plan. Loan rates are often benchmarked to Treasurys and help determine profit margins for many banks. Wells Fargo said growth in checking-account and credit-card openings continues to fall in the wake of its sale-practice scandal. The San Francisco-based bank said checking-account openings fell 43% year-over-year to around 300,000 while new credit-card applications fell 55% from a year-earlier to around 200,000. Warren Buffett's Berkshire Hathaway could see its share price tread water for a while, according to one brokerage. There is "an opportunity for Berkshire to outgrow the market, [but] its superior growth prospects are priced in, following a 20% post-election appreciation in the stock," said analysts at brokerage Morgan Stanley, in a research note.
-Rob Curran, [email protected]