(Updated from 3 p.m.)
Brokerage stocks slid Tuesday on fears that the slowing economy will lead to a decrease in trading. A couple of negative reports from Wall Street research analysts also dragged financial stocks lower.
Stocks across the financial landscape were falling. The
American Stock Exchange Broker/Dealer Index
was recently losing 4.9%. Tracking the banking industry, the
Philadelphia Stock Exchange/KBW Bank Index
was off 3.6%. And the
S&P Insurance Index
was 2.2% lower.
CIBC World Markets
said in a note from analyst Ken Worthington that "continued weakness in the equity markets and advisory environments" continue to cause concern among financial firms.
Keefe Bruyette & Woods
issued a number of ratings changes, saying in a research note that "market volatility and economic uncertainty appear to be taking their toll on the retail segment of the brokerage business.''
fell $6.04, or 7.6%, to $73.10 and
dropped $1.19, or 5.2%, to $21.80 in recent trading on the
New York Stock Exchange
Morgan Stanley Dean Witter
dipped $5.25, or 7%, to $69.50, and
lost $3.65, or 5.5%, to $63.22.
The losses were widespread. Banking giant
JP Morgan Chase
was down $1.73, or 3.3%, to $50.26 and online broker
declined 67 cents, or 5.4%, to $11.78.
stumbled 41 cents, or 4.5%, to $8.56 on the