Update on Financials: Continuing to Trend Lower

With just two hours left in today's trading session, financial stocks are continuing to move lower as investors are worried about the outlook for banks moving into the second half of this year.

Concerns were sparked on Sunday when Treasury Secretary Timothy Geithner appeared on ABC's This Week. Geithner indicated that "some banks are going to need some large amounts of assistance", possibly suggesting that the government's stress tests may return results that are not as previously anticipated.

The FAZ, or Direxion Financial Bear 3x ETF (NYSE: FAZ), a levered bearish fund, has continued moving higher throughout today and is currently at it's intraday highs. The fund is now up 19.5%, most recently trading at $23.84. Meanwhile, the FAS, or Direxion Financial Bull 3x (NYSE: FAS), which is the opposite of the FAZ, is down 18.8% to $5.15.

Around the sector:

• Bank of America (NYSE: BAC) down 16.8% to $6.12
  
• Citigroup (NYSE: C) down 9.2% to $2.37
  
• Goldman Sachs (NYSE: GS) down 6% to $101.57
  
• JPMorgan (NYSE: JPM) down 7.1% to $25.47
  
• Morgan Stanley (NYSE: MS) down 9% to $22.14
  
• Wells Fargo (NYSE: WFC) down 9.8% to $14.06
  
• US Bancorp (NYSE: USB) down 9.5% to $14.14
  
• State Street (NYSE: STT) down 6.5% to $28.61

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