After two trading days of consecutive gains this week, U.S. bank stocks retreated Wednesday, Oct. 4, even as Federal Reserve Chair Janet Yellen spoke optimistically about community bank deregulation.
The SNL U.S. Bank Index fell 0.78% to 574.92, and the SNL U.S. Thrift Index decreased 0.84% to 936.90. The Dow Jones Industrial Average climbed 0.09% to 22,661.64, the S&P 500 added 0.12% to 2,537.74 and the Nasdaq Composite Index ticked up 0.04% to 6,534.63.
At a community banking conference in St. Louis, Yellen said the Fed is working hard to reduce regulatory burdens on community banks, paying special attention to simplifying capital requirements. Even though bank stocks generally fell on the day, analysts may see Yellen's words as promising news for ending strict postcrisis regulations for smaller financial institutions.
Each of the big four U.S. banks fell, with Wells Fargo & Co. down 1.12% to $54.96. The company is planning to refund customers who were improperly charged for mortgage rate lock extensions from Sept. 16, 2013, through Feb. 28. JPMorgan Chase & Co. fell 1.02% to $96.36, Bank of America Corp. slipped 0.58% to $25.71 and Citigroup Inc. slipped 0.09% to $74.06.
Among notable price movers, CVB Financial Corp. fell 3.31% to $23.39, Hope Bancorp Inc. fell 3.15% to $17.54 and PacWest Bancorp retreated 2.72% to $48.57.
In the thrift space, BofI Holding Inc. fell 0.25% to $28.10.
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