Financial stocks saw choppy trading around the flat line Monday as investors took a breather following a barrage of miserable earnings last week that finished with a huge Friday pullback.
Financial Sector Index fell 0.2% to 9,006.83 and the KBW Bank Index dipped 0.1% to 100.35.
Among the decliners was
(WTFC - Get Report)
, whose earnings dropped by about one-third year over year to $9.9 million, or 40 cents a share, under significant pressure from what the Illinois bank called "an extreme mortgage banking environment."
Revenue was off 7.4% to $77.7 million. Analysts polled by Thomson Financial were looking for income of 64 cents a share, less special items, on revenue of $88 million. Shares surrendered $1.67, or 4.4%, to $36.67 in recent trading.
Struggling mortgage investor
Luminent Mortgage Capital
announced that CFO Christopher Zyda has resigned effective year-end, having declined to relocate to Philadelphia from Luminent's San Francisco headquarters, which is currently being shut down. Controller Karen Chang will succeed him. Shares were losing 5.4% to $2.11.
Friedman Billings cut both
Cathay General Bancorp
(CATY - Get Report)
and student lender
(NNI - Get Report)
to underperform, assigning price targets of $25 and $18, respectively. Shares were sliding 4.8% to $27.95 and 3.6% to $17.82.
(AXP - Get Report)
Discover Financial Services
(DFS - Get Report)
, meanwhile, were the hardest hit of a group of credit card issuers and mortgage lenders downgraded by Lehman Brothers.