Financial stocks fall in face of stock market’s rally, as Citigroup and Schwab help drag the sector down

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Financials were the only sector not participating in the broader stock market rally, as selloff in shares of Charles Schwab Corp.
SCHW,
-2.36%
and Citigroup Inc.
C,
-3.72%
dragged the group down. The SPDR Financial Select Sector ETF
XLF,
-0.83%
slipped 0.4% in morning trading, with 37 of 66 equity components trading lower, while the S&P 500
SPX,
+0.93%
rose 0.9%. Citigroup’s stock sank 4.0% to pace the decliners, adding to the 5.6% drop on Monday, to put it on track to close at a 4-month low. The stock sold off Monday after The Wall Street Journal reported that regulators were preparing to reprimand the bank for failing to improve its risk-management systems, which comes after the bank mistakenly made a $900 million payment to creditors of Revlon Inc.
REV,
-4.21%.
The WSJ report said being in regulators’s crosshairs helped accelerate the retirement plans of Chief Executive Michael Corbat. Meanwhile, Schwab’s stock slid 3.0% after the discount broker provided a downbeat revenue outlook. Among other more-active components of the financial ETF, shares of Bank of America Corp.
BAC,
-1.37%
lost 1.6% and J.P. Morgan Chase & Co.
JPM,
-2.10%
slid 1.4%, while Wells Fargo & Co.
WFC,
+0.30%
gained 0.5%

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