Financial Winners and Losers: AmEx - TheStreet

Financial Winners and Losers: AmEx

Financial stocks finished mixed Friday, with American Express among the losers following its second-quarter earnings report.
Author:
Publish date:

(Updated with final stock prices moves throughout.)

Financial stocks ended mixed Friday, with

American Express

(AXP) - Get Report

reversing early losses to finish higher following its second-quarter earnings report.

After Thursday's close,

AmEx

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

Wells Fargo

(WFC) - Get Report

. Also among the losers,

Citigroup

(C) - Get Report

and

Bank of America

(BAC) - Get Report

each lost 1.4%, and

JPMorgan Chase

(JPM) - Get Report

slipped 0.6%.

Among analyst moves, Citigroup upgraded

E*Trade Financial

(ETFC) - Get Report

to hold from sell, and the firm downgraded

Charles Schwab

(SCHW) - Get Report

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

(COF) - Get Report

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.

Elsewhere,

CIT Group

(CIT) - Get Report

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

Associated Press

reports.

In a separate report,

The Wall Street Journal

said that CIT received bids to buy parts of the troubled commercial lender from

Berkshire Hathaway

(BRK.A) - Get Report

and

Leucadia National

(LUK)

but turned them down because the price was too low.

CIT Group shares tacked on a penny, or 1.4%, to 75 cents.