Financial Winners & Losers: Citi

Investors took a glass-half-full approach after several financial companies reported poor-but-not-too-awful quarters, boosting stocks in the sector Friday.

Banking giant Citigroup (C Quote) led the way higher on better-than-expected financial results. The nation's largest bank delivered a loss of 54 cents a share for the second quarter vs. the $1.24 it earned for the same period last year. Analysts, according to Thomson Reuters data, called for a loss of 66 cents a share.

The $2.5 billion shortfall was less than what the market expected, and relieved investors propelled the stock up 9% to $19.58. The bank laid off 6,000 employees in the second quarter and wrote down assets of $7.2 billion. Consumers affected by the weakening economy have begun to default on home-equity loans, auto loans and credit cards. Washington Mutual (WM Quote) basked in the glow of Citi as its shares jumped 16% to $5.80 ...