Friday's Financial Winners & Losers

Updated from 11:40 a.m. EDT

Financial stocks on the whole were slightly lower Friday as strong economic numbers led to concerns that the Federal Reserve might be reluctant to cut interest rates, despite the shakeout taking place in the mortgage sector.

The NYSE Financial Sector Index was down earlier in the day but later rose 0.7%. The Nasdaq Financial 100 also reversed an earlier-day loss to rise 1%, as did the S&P 500 Financial Sector Index, which was losing nearly half a percent earlier but later gained about half a percent.

Data released earlier showed unexpected growth in durable goods orders and a surprise advance in new-home sales. The Fed is more amenable to cutting rates when economic reports show weakness, and the latest figures could diminish the chance of a reduction in the near term. ...