(Updated with final stock prices moves throughout.)
Financial stocks ended mixed Friday, with
reversing early losses to finish higher following its second-quarter earnings report.
After Thursday's close,
said that excluding the Troubled Asset relief Program repayment, second-quarter earnings would have totaled 27 cents a share, beating consensus estimates by a penny.
However, the company said net loans charged off in its U.S. card member business totaled 10% in the latest quarter, up from 8.5% in the first quarter and 5.3% a year ago. However, AmEx said it now expects charge-off rates in the unit to be below 10% for the second half of the year, which is lower than that outlook offered earlier in the year, and shares climbed 6 cents, or 0.2%, to finish at $29.51.
On the other hand, bank stocks were the worst performers, led by a 3.3% drop in
. Also among the losers,
Bank of America
each lost 1.4%, and
Among analyst moves, Citigroup upgraded
to hold from sell, and the firm downgraded
to hold from buy, cutting the price target to $18 from $20.
Late Wednesday, E*Trade reported a second-quarter loss of 22 cents a share, better than the Thomson Reuters consensus for a loss of 31 cents a share. On the other hand, Charles Schwab said last week that profit fell 31% from the year-ago period to $205 million, or 18 cents a share, matching analysts' expectations.
E*Trade shares ended unchanged at $1.42, while Schwab shares dropped 3.7% to close at $16.60.
On the winning side,
Capital One Financial
shares rose $2.24, or 8.1%, to finish at $30.07 after the credit card company reported a narrower second-quarter loss than Wall Street had expected on Thursday.
Capital One posted a second-quarter loss of 65 cents a share, although it would have earned 53 cents a share if not for repaying bailout funds, the company said. Analysts had expected Capital One to post a loss of 73 cents a share, on average, according to Thomson Reuters.
is amending the terms of a tender offer for its notes, but warns it may have to seek bankruptcy protection if enough bondholders don't agree to the terms.
In a regulatory filing Friday, CIT said if the offer is successful, it won't file for bankruptcy and will pursue a restructuring through other unspecified ways, the
In a separate report,
The Wall Street Journal
said that CIT received bids to buy parts of the troubled commercial lender from
but turned them down because the price was too low.
CIT Group shares tacked on a penny, or 1.4%, to 75 cents.