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.
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