Financial Winners & Losers: National City
Monday provided a mixed day of trading for financial stocks, which struggled for direction amid several analyst actions.
Citigroup upgraded National City (NCC) to buy from hold based on its recent capital raise. The analyst thinks the beaten-down bank will be able to weather this storm with the capital cushion the bank has built up; however, the price target remains $7. Shares of the Cleveland-based bank rose 5.6% to $5.88.
The same analyst though lowered earnings estimates for investment banks Goldman Sachs (GS), Lehman Brothers (LEH) and Morgan Stanley (MS), citing decreased client trading among other factors. Goldman dropped $3.31, or 1.8%, to $183.83; Lehman slid $1.07, or 2.5%, to $42.57; and Morgan tumbled $1.18, or 2.5%, to $46.03.
The NYSE Financial Sector index ticked down 0.7% to 7,617.50 after having been in positive territory earlier in the day.Mortgage lender Fannie Mae (FNM) gave back 3.25 to $28.93 after announcing that it would institute a new policy on down payments for conventional loans. The new requirements will allow homeowners to apply 3% or 5% as a down payment for primary residences. Fannie Mae said it wanted to support homeowners. E*Trade (ETFC) announced that it had signed an agreement to sell its equity shares in IL&FS Investment, an India-based financial organization. The sale is expected to generate $145 million in proceeds to the electronic brokerage. Shares in E*Trade lost 6.5% to $4.03.
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