Friday's Financial Winners & Losers
Financial stocks took another downturn Friday to cap off a mostly bearish week for the sector, which saw a harrowing influx of poor financials.
Among the culprits today was Wachovia (WB), which fell 2% after joining the parade of financial services firms whose earnings were rotted out by credit market disruptions. Its third-quarter profit slid 24.4% year over year to 90 cents a share, or $1.71 billion (excluding one-time items) amid a credit-loss provision of $408 million that more than doubled from last quarter.
Revenue rose 4.3% from last year to $7.35 billion. Analysts polled by Thomson Financial were looking for income of $1.03 a share on revenue of $8.02 billion. Shares of the Charlotte, N.C., bank were recently down 98 cents to $47.16.
Citigroup (C), which reported an even worse earnings tumble earlier this week, lately lost another 1.1% to $43.34. The radiant pain was even sharper for Bank of America (BAC) and Washington Mutual (WM), each of which reported their own weak profits just yesterday. Shares were off 1.8% and 5.5%, respectively.All of the above stocks helped to pressure both the NYSE Financial Sector Index, down 1.7%, and the KBW Bank Index, down 1.3%, along with a sinking Capital One (COF). The McLean, Va., credit card issuer, burdened by the high costs of shutting down its GreenPoint Mortgage business, swung to a third-quarter loss of $81.6 million, or 21 cents a share. The $883 million charges were slightly higher than expected due to the dwindling value of the business. On average, analysts were looking for a loss of 30 cents a share; last year, Capital One had a profit of $1.89 a share.
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