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Monday's Financial Winners & Losers

Countrywide Financial retreats on new housing market data.

Updated from 2:41 p.m. EDT

Financial stocks were dragged lower with the broad indices amid

disappointing numbers from the housing market: existing-home sales were off 0.2% for July, according to the National Association of Realtors, while inventories of unsold homes climbed 5.1%.

Losing substantial ground on the news was

Countrywide Financial


, shares of which were slammed earlier this month by housing-market worries before picking up last week on a

$2 billion equity infusion from

Bank of America

(BAC) - Get Bank of America Corp Report


Lehman Brothers sliced the lender's 2007 earnings target to $1 from $2.80, and Piper Jaffray downgraded the stock to market perform from outperform. Countrywide shares closed down 4.8% to $20 in heavy trading, to retreat ever further from the pop after the BofA news a few days ago.

BofA, meanwhile, slid 1.9% to $50.87 and weighed on the trailing KBW Bank Index, which underperformed the rest of the market with a 1.3% loss at 107.68.

Subprime lenders also took a hit today --

Fremont General


tumbled 9.8%,

NovaStar Financial


lost 7.5%, and

Accredited Home Lenders

(LEND) - Get Amplify CrowdBureau Peer to Peer Lending & Crowdfunding ETF Report

gave up 4%.

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Luminent Mortgage


fell 6.7% earlier in the day but closed up 26.9% to $1.70, after JMP Securities upped the struggling mortgage-investment firm to market underperform from sell, citing last week's announced letter of intent for a bailout deal with Arco Capital.



Financial Sector Index, which harbors all but one of the above names, surrendered 99.19 points, or 1.1%, to about 9063.

On the brighter side,

Nasdaq Stock Market


climbed higher after

The Daily Telegraph

reported that the exchange might sell its 31% stake in the

London Stock Exchange

to Borse Dubai, its

rival bidder for


. According to sources cited by the paper, a joint bid with Borse Dubai for the Nordic exchange may follow.

Nasdaq initially

announced plans to unload its LSE stake last week. Its stock gained 60 cents, or 1.9%, to $32.01.


Marsh & McLennan

(MMC) - Get Marsh & McLennan Companies, Inc. (MMC) Report

traded up on Friday's postbell announcement that it will buy back $800 million of its shares on an accelerated basis, having struck a deal with a "financial institution counterparty." That represents most of the insurance broker's recent $1.5 billion authorization. Shares added 1% to $26.78 Monday.