Tuesday's Financial Winners & Losers
Updated from 11:30 a.m. EDT
As has been the case for several weeks and likely will be for many more, the story in the financial sector continued to be the uncertainty surrounding mortgage banking and access to credit.
The Nasdaq Financial 100 was up 1.1%, and the NYSE Financial Sector Index was up 0.3%. The S&P 500 Financial Sector Index was up 0.5%.
Among individual stocks, Capital One (COF) was gaining 2.6% to $68.47 a day after the McLean, Va., lender cut its outlook and revealed plans to close its mortgage division.While shutting GreenPoint Mortgage, Capital One will eliminate 1,900 jobs and take a charge of $860 million. The company now expects to earn $5 a share this year, down from the previous forecast of $7.15. Still, the move away from mortgages cheered investors, who have grown distrustful of the sector. Elsewhere, mortgage-banking firm Accredited Home Lenders (LEND) rose 1.7% to $6.55 after its announcement that it will trade around $1 billion of loans through a 90-day purchase agreement. The transaction will reduce the San Diego-based company's exposure to margin calls on the loans, Accredited said. Also on the rise was Countrywide (CFC), the Calabasas, Calif., mortgage provider. The company's stock, which has been yanked back and forth in recent sessions, closed up 10% to $21.79. The reason for the upward move was a report in The Wall Street Journal, which said some investors believe Warren Buffett's Berkshire Hathaway (BRK.A) might be interested in acquiring some parts of Countrywide if it looked to sell.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV