NEW YORK ( TheStreet) -- Financial stocks were mostly higher Wednesday as weaker-than-expected economic data soothed concerns the Federal Reserve would reduce its $85 billion monthly bond purchases this year.
A notable exception, however, were common shares of government sponsored enterprises Fannie Mae (FNMA)and Freddie Mac (FMCC), which continued to see a sharp sell-off for a second day following the introduction of legislation viewed as negative for shareholders hoping to claim a share in the profits of the housing giants.
Shares of Fannie were down 24.84% to $1.18 mid-Wednesday afternoon, while Freddie shares were lower by 22.67% to $1.16. Volumes were more than twice their trailing three-month daily moving average.
Most other major financial stocks were higher, however, as reflected in the 1.23% rise in Financial Select Sector SPDR (XLF) a widely-followed financial sector exchange traded fund. Major components Citigroup (C), Bank of America (BAC), Wells Fargo (WFC) and JPMorgan Chase (JPM) were up by 1.44%, 1.1%, 2.1% and 1.31%, respectively. Trading lower, on the other hand, were Morgan Stanley (MS)and Goldman Sachs (GS), following reduced estimates from Atlantic Equities analyst Richard Staite.-- Written by Dan Freed in New York. Follow @dan_freed
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