Updated from 2:50 p.m. EDT
Financial stocks slunk behind the broad indices Thursday as
took a 24.7% nose dive on a slashed full-year outlook.
The Dallas-based asset manager now expects to earn $1.20 to $1.24 a share in fiscal 2007 -- at least 11 cents below the prior range -- after experiencing a weaker-than-expected second quarter. Analysts polled by Thomson Financial are looking for $1.39 a share. Despite simultaneously announcing a $25 million share-buyback plan, the stock lost $6.25 to $19.11 in heavy trading.
was another prominent laggard after its Option One subsidiary didn't get a renewal on its
warehouse financing facility. That leaves the subprime-mortgage-lending unit with $8 billion in total committed warehouse capacity, and $2 billion in uncommitted capacity. H&R Block
agreed to sell
Option One to a
private-equity firm in April. Shares of the tax preparer were off 2.1% to $22.55.
slipped after saying its aerospace unit will buy five 787 Dreamliner aircraft from
for some $810 million. Shares of CIT retreated 93 cents, or 1.6%, to $55.81; Boeing was up 0.7% to $98.36.
CIT helped to pull down the
Financial Sector Index, which slid 0.3% to 9709.08. The KBW Bank Index was down 0.6% as many of its components traded in the red -- among them,
, which shed 1.5% and 1%, respectively.
On the flip side, however, asset manager
flew higher on Tuesday's postclose news that it will buy
$26 billion in cash
, or $47.50 a share -- a 31.8% premium to Hilton's Tuesday close. The deal should close in the fourth quarter.
Blackstone added 3.1% to $30.63 as Hilton shares soared 25.9%.
Finally, shares of
ticked up after the commodities exchange said its June average daily volume surged 33% to about 1.4 million contracts. Shares closed up $1.32 at $127.20.