Tuesday's Financial Winners & Losers
Visa's
(V) - Get Report
IPO last month lifted profits at several banks reporting earnings Tuesday, helping buoy financial stocks.
U.S. Bancorp
(USB) - Get Report
,
Regions Financial
(RF) - Get Report
,
M&T Bank
(MTB) - Get Report
,
Commerce Bancshares
(CBSH) - Get Report
and
Marshall & Ilsley
( MI) all announced earnings benefitting for selling Visa shares.
Troublesome loans, however, tempered the gains at most of the banks. U.S. Bancorp, which operates mostly west of the Mississippi, beat analyst estimates by a penny, but recorded higher levels of non-performing loans and increased net charge-offs. Regions is predominantly in the Southeast, M&T is in mid-Atlantic states, Commerce is in the Southwest and Marshall & Ilsley is in Wisconsin and several other states.
U.S. Bancorp shares ticked up 54 cents to $32.21; Regions rose $1.56, or 8.4%, to $20.12; M&T soared $5.11, or 6.3% to $85.86; Commerce Bancshares up 3.4% to $41.35 and Marshall & Ilsley rose 33 cents, or 1.5%, to $21.94.
The
NYSE
Financial Sector Index was closed up 56.82 to 7,278.76.
Brokerage firm
Charles Schwab
(SCHW) - Get Report
announced a first-quarter profit that climbed 12% to meet analyst expectations as the discount stock brokerage avoided most of the shaky investments that have tripped up much of the financial services industry. The stock jumped 9% to $19.95, a gain of $1.64.
U.S. money manager
BlackRock
(BLK) - Get Report
said that some of its closed-end funds are redeeming $1.9 billion of auction-rate preferred shares they have issued and will replace the leverage with other instruments. BlackRock is the second-biggest closed-end fund firm. Investors seem pleased with the news pushing the stock up $2.34 to $205.19.
Clearly not having a winning quarter was investment manager
State Street
(STT) - Get Report
, which reported a portfolio loss of $11.6 million and confessed they faced billions of dollars in unrealized losses tied to subprime securities. Even though State Street beat consensus first-quarter estimates, the stock crumbled 9.9% to $68.23, a loss of $7.63.
Fitch Ratings on Tuesday lowered the outlook on the ratings of
Jefferies Group
(JEF) - Get Report
to negative from stable, but affirmed the investment bank's investment-grade ratings. The New York-based regional broker closed down 21 cents to $14.22.