Janus and Regions: Financial Losers
NEW YORK (
)--Stocks were weak across the board Tuesday and financials were no exception. The U.S. dollar, which has strengthened in recent days on European debt concerns, got a further boost Tuesday following violence on the Korean Peninsula.
The
Financial Select Sector SPDR
(XLF)
, a popular exchange traded fund that tracks financial stocks, fell 1.50% to $14.42 on lower-than-average volumes.
Volumes were lower than usual for most financial names, though
Janus Capital Group
(JNS)
saw a flurry of activity as the money management company disclosed Tuesday it had received a request for information in a broad probe of
by federal authorities first reported Friday on
The Wall Street Journal
's website. Janus, which also sold off Monday, fell another 2.83% to $10.65 on Tuesday on more than twice the average daily volume for the stock.
Wellington Management
TheStreet Recommends
and
also received inquiries,
The Wall Street Journal
reported Tuesday.
Goldman Sachs
(GS)
which took a big hit Monday after it was named in the
Journal
report, was down again on Tuesday, though its 2.01% drop to $157.82 was slightly better than
Citigroup
(C)
, which fell 2.03% to $4.10, and
JPMorgan Chase
(JPM)
, which saw its stock fall 2.29% to $37.63.
Regions Financial
(RF)
stock was downgraded to junk status ( BB+/B from BBB-/A-3, with a negative outlook) by Standard & Poor's on Tuesday on concern that more loan losses may erode the firm's capital. Regions ended the day down 14 cents at $5.21.
As for other big banks,
Bank of America
(BAC)
lost 1.77% to close at $11.10, while
Morgan Stanley
(MS)
dropped 1.56% to $24.67.
Wells Fargo
(WFC)
which would seem to have the least to worry about among the big banks from either an insider trading crackdown or events outside the U.S., dropped a relatively modest 0.48% to finish the day at $26.82.
--
Written by Dan Freed in New York
.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
