Financial companies in the S&P 500 had the biggest gain among 10 groups in 2012 through yesterday, surging 15 percent, or almost double the benchmark measure's advance. The industry's earnings grew 12 percent in the first quarter, and on average, 66 percent of financial companies in the S&P 500 beat analysts' estimates, according to data compiled by Bloomberg.
"It's never a good time to lose $2 billion, but this a particularly bad one given all the variables out there," Walter Todd, who oversees about $950 million as chief investment officer at Greenwood Capital in Greenwood, South Carolina, said in a telephone interview. "Investors are nervous because of the situation in Europe, they are nervous because of the Chinese slowdown. This is not something that the market needed."
Concern about Europe's debt crisis grew as Greece's political leaders began a fifth day of talks to carve out a unity government amid speculation of a euro exit. Spain will force the country's banks to lift provisions against losses on real estate loans by 30 billion euros ($38 billion). China's industrial production grew the least since 2009 in April.
Economic Data
A report today may show confidence among U.S. consumers declined in May from the highest level in a year. The Thomson Reuters/University of Michigan's preliminary index of sentiment fell to 76 from 76.4 last month, according to the median of 68 forecasts in a Bloomberg survey of economists.
Nordstrom Inc. slumped 3.7 percent to $51.55. The U.S. chain with more than 100 namesake department stores posted first-quarter profit that trailed analysts' estimates as expenses for e-commerce investments increased.
Nvidia Corp. rallied 8.2 percent to $13.44 after predicting second-quarter sales that exceeded analysts' estimates, bolstered by demand for its new graphics chips and mobile-phone processors.
Arena Pharmaceuticals Inc. jumped 75 percent to $6.40. The company's weight-loss pill gained the backing of an advisory panel, putting two obesity drugs in line for U.S. approval almost two years after regulators rejected them as too risky.