Citigroup (C) and Bank Reform Add To Downside In The Financial ETF (XLF)

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May 20, 2010 3:03pm NYSE:IYF NYSE:UYG

“Citigroup (NYSE:C) was among the losers of the financial sector Thursday, following the broader market indices lower as the S&P 500 approached correction territory. Citigroup (NYSE:C) shares

 fell nearly 5% as the S&P 500 fell 2.5% to 1086.94, a loss of 10% over the last month, to the index’s lowest level since February. Stocks were pressured by a surprising jump in weekly initial jobless claims and continued fears over the debt crisis in Europe. Financial stocks were among the hardest hit of the market sectors. The ProShares Ultra Financial (NYSE:UYG) ETF lost 4.6%, the iShares Dow Jones U.S. Financial Sector (NYSE:IYF) ETF slid 2.5%, and the Financial Select Sector SPDR (NYSE:XLF) dropped 2.4%, “Robert Holmes Reports From The Street.

The reform bill  is also weighing on financial ETFs as Holmes reports, “The Senate voted to end debate on the financial reform bill, which means a final vote on the legislation could come in the next few days. After the Senate failed in its first attempt to end the debate Wednesday, a second attempt reached the 60-vote minimum to pass.

Paul Miller, a bank analyst with FBR Capital Markets, said that while the first failed vote was a “stumbling block, the Senate is still poised to complete work on this bill in the next few days, setting up reconciliation with the House and, we believe, final passage next month.” Miller suggests that investors watch for debate over an amendment would strengthen the Volcker Rule by “accelerating the process and giving less leeway to regulators for implementation. While this amendment is still a threat, the opposition is making it tough for it to get attached to the bill,” Miller said

On the same issue  Kerry Grace Benn from WSJ was reporting that,  “The Senate is likely making things worse for the stocks, Rochdale Securities analyst Richard Bove said. He compared the current environment with late 2008, when senators were suggesting the U.S. financial system had collapsed and needed to be nationalized or allowed to fail. Those remarks accelerated the stocks’ fall then, because the senators removed all confidence from the banking system, and that’s happening again now, he said. Bove said he thinks the motion will probably pass Thursday because senators will realize they are hurting the market the more they comment negatively and continue to draw out the negotiations on the bill.

“My gut tells me that if we didn’t have this bill at this point, the market would be in a lot better shape even with problems in the euro zone,” Raymond James analyst Anthony Polini said.

Chart forFinancial Select Sector SPDR (XLF)

Here are some details we put together on the Financial Select Sector SPDR ETF (NYSE:XLF) including a list of all the financial institutions within the ETF below:

Financial Select Sector SPDR ETF (NYSE:XLF)

The Financial Select Sector SPDR® Fund, before expenses, seeks to closely match the returns and characteristics of the Financial Select Sector Index (ticker: IXM). Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.

Fund Name: Financial Select Sector SPDR Fund
Ticker Symbol: XLF      
Holdings: As Of 05/19/2010  
Name Weight Ticker Sector Shares Held
Bank Of America Corporation 10.01 (BAC) Financials 40932412
Jpmorgan Chase & Co 9.57 (JPM) Financials 16210702
Wells Fargo & Co New 9.53 (WFC) Financials 21138476
Berkshire Hathaway Inc Del 7.68 (BRK.B) Financials 6752175
Citigroup Inc 4.58 (C) Financials 80184110
Goldman Sachs Group Inc 4.51 (GS) Financials 2147514
American Express Co 2.94 (AXP) Financials 4882905
Us Bancorp Del 2.83 (USB) Financials 7808157
Morgan Stanley 2.31 (MS) Financials 5704172
Bank Of New York Mellon Cor 2.13 (BK) Financials 4929600
Metlife Inc 2.03 (MET) Financials 3342589
Pnc Finl Svcs Group Inc 1.99 (PNC) Financials 2109248
Prudential Finl Inc 1.66 (PRU) Financials 1897406
Travelers Companies Inc 1.58 (TRV) Financials 2095866
Simon Ppty Group Inc New 1.48 (SPG) Financials 1183348
Bb&T Corp 1.37 (BBT) Financials 2819696
Aflac Inc 1.27 (AFL) Financials 1913971
Cme Group Inc 1.27 (CME) Financials 271698
State Str Corp 1.23 (STT) Financials 2021028
Capital One Finl Corp 1.18 (COF) Financials 1858069
Allstate Corp 1.03 (ALL) Financials 2190693
Chubb Corp 1.03 (CB) Financials 1340828
Schwab Charles Corp New 1.02 (SCHW) Financials 3988969
Franklin Res Inc 0.94 (BEN) Financials 605402
Suntrust Bks Inc 0.84 (STI) Financials 2038726
Progressive Corp Ohio 0.83 (PGR) Financials 2742077
Price T Rowe Group Inc 0.82 (TROW) Financials 1057051
Northern Tr Corp 0.77 (NTRS) Financials 986512
Equity Residential 0.77 (EQR) Financials 1150366
Public Storage 0.75 (PSA) Financials 553828
Vornado Rlty Tr 0.74 (VNO) Financials 643568
Marsh & Mclennan Cos Inc 0.72 (MMC) Financials 2172827
Loews Corp 0.72 (L) Financials 1447753
Hartford Finl Svcs Group In 0.69 (HIG) Financials 1810601
Aon Corp 0.66 (AON) Financials 1088838
Fifth Third Bancorp 0.65 (FITB) Financials 3245983
Boston Properties Inc 0.65 (BXP) Financials 567404
Ameriprise Finl Inc 0.65 (AMP) Financials 1043170
Host Hotels & Resorts Inc 0.58 (HST) Financials 2664543
Regions Financial Corp New 0.57 (RF) Financials 4868982
Hcp Inc 0.57 (HCP) Financials 1199596
Principal Finl Group Inc 0.55 (PFG) Financials 1304264
Invesco Ltd 0.52 (IVZ) Financials 1750590
Intercontinentalexchange In 0.51 (ICE) Financials 300682
Lincoln Natl Corp Ind 0.51 (LNC) Financials 1234028
Avalonbay Cmntys Inc 0.49 (AVB) Financials 332761
Nyse Euronext 0.46 (NYX) Financials 1065466
Discover Finl Svcs 0.45 (DFS) Financials 2219272
Unum Group 0.45 (UNM) Financials 1357091
Genworth Finl Inc 0.45 (GNW) Financials 1996836
Ventas Inc 0.44 (VTR) Financials 639886
Comerica Inc 0.43 (CMA) Financials 710732
M & T Bk Corp 0.42 (MTB) Financials 339183
Keycorp New 0.42 (KEY) Financials 3585123
Hudson City Bancorp 0.38 (HCBK) Financials 1934436
Xl Cap Ltd 0.38 (XL) Financials 1396542
Kimco Realty Corp 0.36 (KIM) Financials 1652236
Plum Creek Timber Co Inc 0.35 (PCL) Financials 664639
Prologis 0.34 (PLD) Financials 1936111
Slm Corp 0.33 (SLM) Financials 1979122
Peoples United Financial In 0.33 (PBCT) Financials 1516266
Health Care Reit Inc 0.31 (HCN) Financials 504921
Legg Mason Inc 0.31 (LM) Financials 663751
American Intl Group Inc 0.31 (AIG) Financials 551011
Cincinnati Finl Corp 0.28 (CINF) Financials 665026
Huntington Bancshares Inc 0.27 (HBAN) Financials 2924594
Marshall & Ilsley Corp New 0.27 (MI) Financials 2150149
Torchmark Corp 0.26 (TMK) Financials 338294
Moodys Corp 0.26 (MCO) Financials 802692
Leucadia Natl Corp 0.26 (LUK) Financials 774779
Assurant Inc 0.25 (AIZ) Financials 475616
Cb Richard Ellis Group Inc 0.25 (CBG) Financials 1103250
Zions Bancorporation 0.24 (ZION) Financials 654518
E Trade Financial Corp 0.18 (ETFC) Financials 7777219
First Horizon Natl Corp 0.18 (FHN) Financials 919652
Nasdaq Omx Group Inc 0.17 (NDAQ) Financials 604367
Apartment Invt & Mgmt Co 0.15 (AIV) Financials 478432
Janus Cap Group Inc 0.13 (JNS) Financials 748817
Federated Invs Inc Pa 0.13 (FII) Financials 362389
State Str Instl Liquid Resvs 0.05 85749P9A Unassigned 3226709
U.S. Dollar 0.01 CASH_USD Unassigned 714112

 Chart forFinancial Select Sector SPDR (XLF)

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