Tuesday's Financial Winners & Losers
Updated from 2:13 p.m. EDT with new stock prices
Financial stocks trailed the sinking broad market a day after Federal Reserve Chairman Ben Bernanke said the ongoing housing market turmoil will likely be a "significant drag" on the economy through early next year.
Evidence of the crunch, meanwhile, continued surfacing in fresh third-quarter results. Mortgage-security writedowns and mushrooming credit losses ate into Wells Fargo's (WFC) quarterly profit -- which, at 68 cents a share, was 2 cents shy of Thomson Financial's consensus estimate despite gaining 6.2% over last year.
Shares of the San Francisco bank fell $1.41, or 3.92%, to $34.54, to weigh on both the NYSE Financial Sector Index and the KBW Bank Index. The trackers were recently plunging close to 2% apiece.Also dampening both indices was Cleveland's KeyCorp (KEY), which dropped 5.90% to $30.44 on a wide miss. Third-quarter continuing-operations income plunged by 23% from last year to 57 cents a share, or $224 million (less the effect of an accounting change). The Street was looking for 71 cents a share. New York broker Jefferies (JEF) and Alabama bank Regions Financial (RF) each reported diminishing earnings that fell short of expectations. Shares shed 5.28% and 2.06%, respectively. Minneapolis-based U.S. Bancorp (USB) posted a penny per-share gain for a penny beat, but total earnings slipped slightly. Its stock gave up 0.49% to $32.35. Citigroup (C) was still suffering a day after unveiling a tumbling third-quarter profit, with shares lately off 3.14% to $44.79, and troubled mortgage lender Thornburg Mortgage (TMA) slid 3.55% ahead of today's scheduled postclose earnings release.
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