This Day On The Street
Continue to site
ADVERTISEMENT
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

H&R Block: Financial Winners & Losers

NEW YORK ( TheStreet) -- Financial stocks breathed some life the day before the holiday weekend as the weekly jobs report came in better than expected.

Financial stocks were for the most part in the black.

The Financial Select Sector SPDR (XLF) chugged 1% higher, to $14.36, during late morning trading.

Winners included Goldman Sachs (GS - Get Report), up 3.4% to $144.57; Barclays (BCS), up 3.2% to $19.92.

H&R Block (HRB - Get Report) shares were surging as high as 9.7% on strong trading volume after the tax services provider sought to calm investor fears that it was not inadequately reserved for potential mortgage repurchases stemming from its former subprime mortgage business, Option One.

H&R Block shares hit a 52-week-low on Thursday of $12.51. The stock has fallen 21% since Aug. 2. CEO Alan Bennett said during the Overland Park, Kansas-based company's fiscal first quarter earnings call on Thursday that while investors seem to be concerned about the company's contingent loan repurchase obligations that "seems to be subject to some speculation that is not based on fact."

H&R Block had reported a loss of 4 cents a share for the quarter.

"We made no change to our aggregate reserve this quarter," Bennett continued. "Recent market speculation regarding potential losses does not relate back to any facts that we have observed. We have not seen any adverse change in our level of claimed payments."

H&R Block set aside $243 million in the spring of 2008 for loan repurchases out of Option One. The company has not added to that level, Bennett says. "We believe our financial reserves here are adequate."

H&R Block shares were surging while shares of Jackson Hewitt (JTX), a tax services competitor, tumbled 5.4% to 87 cents a share. Shares of Jackson Hewitt, which report's first quarter earnings on Sept. 8, have been trading under the critical $2 level since early May.

Several regional bank shares were also slightly in the red including Marshall & Ilsley (MI), Huntington Bancshares (HBAN) and First Horizon (FHN), all falling less than 1% during late morning trading.

--Written by Laurie Kulikowski in New York.



To contact the writer of this article, click here: Laurie Kulikowski.

>To submit a news tip, send an email to: tips@thestreet.com.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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
Submit an article to us!
SYM TRADE IT LAST %CHG
BCS $15.63 0.00%
GS $197.53 0.00%
HRB $31.55 0.00%
AAPL $128.95 0.00%
FB $78.99 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs