Financial Winners & Losers: Fannie Mae

Financial stocks stayed in positive territory throughout the day with the NYSE Financial Sector index rising 146.08 to 6,749.74.

Not all the financials were having such a good day. Washington Mutual(WM Quote) share tumbled 20.10% to $4.65 after reporting a second quarter loss of $3.3 billion after Tuesday's bell. WaMu has been hit hard by the residential downturn and increased its provision for loan losses to nearly $6 billion for the second quarter.

And finally, E*Trade Financial(ETFC Quote) shares plummeted 15.8% to $3.41 as it also reported a larger than expected loss for the second quarter. The electronic brokerage also warned of more trouble unless the economy recovers. E*Trade has suffered from losses in its mortgage business and took a $319 million provision for loan losses.