Financial stocks were lower in Wednesday afternoon trading, with the NYSE Financial Index shedding 0.3% and the State Street Financial Select Sector SPDR ETF (XLF) decreasing 0.1%.

The Philadelphia Housing Index was falling 0.6%, and the State Street Real Estate Select Sector SPDR ETF retreated 0.5%.

Bitcoin (BTC-USD) was declining 0.7% to $87,756, and the yield for 10-year US Treasuries was rising 3 basis points to 4.16%.

In economic news, adjusted initial jobless claims for the week ended Dec. 27 were 199,000, down from 215,000 in the week earlier.

In corporate news, Flushing Financial's (FFIC) planned merger with OceanFirst Financial (OCFC) faces "inherent deal risk" even in a favorable regulatory backdrop for approval, Raymond James said. The companies said they have agreed to merge in an all-stock deal worth about $579 million. Raymond James downgraded its rating on Flushing Financial to market perform from outperform. Flushing Financial shares were down 1%, and OceanFirst fell 1.6%.

Apollo Global Management's (APO) cryptocurrency business Coinstar plans to repay its bondholders next month, as part of its sale to Arctic Slope Regional, Bloomberg reported. Apollo shares were down 0.2%.

Robinhood (HOOD) shares fell 1.4% after Goldman Sachs cut its price target to $164 from $167, while keeping the buy rating.