Financial Winners & Losers: National City
05/19/08 - 04:19 PM EDT
Debra Borchardt
Monday provided a mixed day of trading for financial stocks, which struggled for direction amid several analyst actions.
Citigroup upgraded National City (NCC Quote - Cramer on NCC - Stock Picks) 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 Quote - Cramer on GS - Stock Picks), Lehman Brothers (LEH Quote - Cramer on LEH - Stock Picks) and Morgan Stanley (MS Quote - Cramer on MS - Stock Picks), 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 Quote - Cramer on FNM - Stock Picks) 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 Quote - Cramer on ETFC - Stock Picks) 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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