Financials claw back some from yesterday's decline

|About: Financial Select Sector SPD... (XLF)|By:, SA News Editor

With two regional Federal Reserve bank presidents voicing doubts about whether more rate cuts are needed at the September Fed meeting, financial stocks bounce up.

Financial Select Sector SPDR ETF (NYSEARCA:XLFgains 0.9% after falling 1.3% yesterday. In the past month, XLF has fallen 5.2% vs. the S&P 500's 1.8% decline in the same period.

The six biggest U.S.-based banks climb: Bank of America (BAC +1.3%), Citigroup (C +1.4%), JPMorgan Chase (JPM +1.5%), Wells Fargo (WFC +1.8%), Goldman Sachs (GS +1.3%), and Morgan Stanley (MS +1.1%).

Regional banks advance as well, with the SPDR S&P Regional Banking ETF (NYSEARCA:KREup 0.7%.

    Regions Financial (RF +1.4%), New York Community Bancorp (NYCB +1.7%), CIT Group (CIT +1.4%), KeyCorp (KEY +1.2%), SunTrust Banks (STI +1.2%), BB&T (BBT +1.3%).

Insurance gainers include Brighthouse Financial (BHF +1.2%), MetLife (MET +1.4%), Prudential Financial (PFG +0.7%), American International Group (AIG +0.9%), and Aflac (AFL +1.2%).

Many non-U.S.-based multinational banks are also on the rise as the ECB's July meeting notes show the central bank is looking to develop a package of stimulus measures: Deutsche Bank (DB +2.4%), Banco Santander (SAN +2%), Barclays (BCS +1.5%), and Lloyds Banking Group (LYG +2.1%).

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