This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Monday's Financial Winners & Losers

Financial stocks were mostly drifting higher in step with the rest of the market on Monday, even as December new-home sales took a sizable slide .

The decline -- 4.7% from the prior month and nearly 41% year over year -- is but the latest disappointment following the bursting of the housing bubble some time ago, which led directly into the subprime muck that has blotted the financial sector so thoroughly in the past few months.

Still, the NYSE Financial Sector Index fought against today's initial downward momentum to shimmy up 195.89 points, or 2.6%, at 7,838.23, in recent trading. The KBW Bank Index also was up substantially.

Citigroup (C - Get Report) lent support to both indices, recently adding 2.5% to $27.31, after several published reports indicated that it's filing with Chinese regulators to establish an investment-banking joint venture with Central China Securities Holdings.

Also riding higher was Nymex Holdings (NMX) after it and CME Group (CME - Get Report), a fellow commodities exchange, confirmed that they're in "preliminary" merger discussions with an exclusive 30-day negotiating period. Current numbers being kicked around would have CME paying $36 in cash and 0.1323 of its shares for each Nymex share -- in total, about $119.22 per Nymex share, based on CME's Friday closing price.

As of Nymex's last reported share count in November, that would mean a deal worth roughly $11.07 billion. Another component to the agreement, if and when it closes, may have Nymex buying back its 816 memberships for up to $500 million.

New York-based Nymex was rising $8.26, or 7.7%, to $115.42 as Chicago's CME shed 1.8% to $617.85.

Elsewhere, First Horizon National (FHN - Get Report) climbed 9.2% to $21.36 on word the Memphis, Tenn., bank will halt lending to national homebuilders and commercial real estate businesses while remaining in the construction-lending industry in its home state and elsewhere in the Southeast. That will hasten the company's intended $2 billion reduction in its national real estate portfolio this year, First Horizon said.

South Carolina-based South Financial (TSFG) chugged 9% higher on a Keefe Bruyette upgrade to market perform from underperform, and Dime Community Bancshares (DCOM - Get Report), based in Brooklyn, garnered a buy rating at FTN Midwest. Shares of the latter leapt 5.5%.

And Sallie Mae (SLM - Get Report) tacked on 2% to $20.27 after the Virginia-based student lender said it has dropped its lawsuit against a J.C.-Flowers led consortium whose $25 billion bid for Sallie was finally declared dead last month.

In connection with the lawsuit drop, two others in the original buyer group, Bank of America (BAC - Get Report) and JPMorgan Chase (JPM - Get Report), have agreed to lend it $31 billion for up to a year along with foreign banks Barclays (BCS), Deutsche Bank (DB), Credit Suisse (CS), Royal Bank of Scotland (RBS), and UBS (UBS).

The new borrowed sum replaces $30 billion in financing that BofA and JPMorgan had extended to Sallie in the interim as part of the doomed merger contract. The deal was soured a few months ago by a new federal law cutting subsidies to education lenders -- which, the J.C. Flowers consortium had argued, constituted a "material adverse effect," per the agreement.

On the losing side, mortgage lender Countrywide (CFC) spent most of the day lower, even though Countrywide CEO Angelo Mozilo "voluntarily" forfeited his $37.5 million severance package and other rights in connection with Countrywide's BofA merger agreement announced earlier this month. Shares of the Calabasas, Calif., company were recently off 1.5% to $5.93.

And Federated Investors (FII), a Pittsburgh-based investment manager, lost 2.6% to $41.19 on a downgrade to market perform from outperform at Keefe Bruyette.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.05 -0.57%
C $44.23 -0.96%
CME $92.93 0.66%
DCOM $17.55 -0.06%
FHN $13.62 -0.22%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs