Shares Of Retail Brokers Down Following Earnings

NEW YORK (AP) — Shares of retail brokerages were lower Wednesday after two of the industry's powerhouses posted weaker quarterly results, and analysts noted the companies face ongoing risks.

E-Trade Financial Corp. shares were down 8 cents, or 5 percent, to $1.49 in afternoon trading, but recovered from $1.41 hit earlier in the day.

Ameritrade stock fell 26 cents, or nearly 1.4 percent, to $19.01, up from $18.59. Charles Schwab Corp was down a penny at $17.71 after dipping to $17.55 earlier in the day

On Tuesday, TD Ameritrade Holding Corp. said lower interest rates and rising expenses sent its profit down 9 percent compared with a year ago. However, the company said it handled 35 percent more trades per day on average and its trading-based revenue soared almost 38 percent in its fourth fiscal quarter.

E-Trade meanwhile said its loss widened in the latest quarter as a result of a hefty charge it took to shore up its capital position. The firm has been slammed by the credit crisis because of its investments in real estate loans and bonds backed by the troubled assets.