Financial Stocks in Motion

Shares of Gamco Investors (GBL Quote) rose after the Rye, N.Y., financial services company said an expected decline in its fourth-quarter operating profit wouldn't be as bad as anticipated because of the strong investment performance of the company's equity portfolios.

Gamco said it expects to report earnings of 58 cents to 62 cents a share in the quarter, compared with a profit of 65 cents a year ago. Shares of Gamco rose $2.30, or 5%, to $47.90.

MGIC Investment (MTG Quote) dropped after the Milwaukee-based mortgage insurance company reported fourth-quarter net income of $128.1 million, or $1.44 a share, compared with $134.5 million and $1.39 a share a year ago. Analysts polled by Thomson Financial were expecting a profit of $1.52 a share. ...