Updated from 2:23 p.m. EDT
The financial sector was lagging behind the broad indices Thursday morning, under pressure from a helping of disappointing news.
Financial Sector Index lost about 97 points, or 1.1%, to about 8870 as member
sank 5% to close at $60.07 on poor second-quarter results.
The mortgage investor's profit dropped 47.2% to $1.02 a share, or $764 million. Analysts polled by Thomson Financial had sought $1.16 a share. The McLean, Va., firm blamed the precipitous decline on bad loans, including a higher credit-loss provision.
both retreated after the banks announced that their stock-swap merger, announced in May, has been approved by the
Federal Reserve Board
. They said the transaction should now close "promptly."
National City, off 2.7% to close at $26.55, helped to weigh on the KBW Bank Index. The tracker shed 1.2% to about 105. MAF Bancorp lost 53 cents, or 1%, to close at $52.98.
crept downward on word one of its high-profile fund managers, Scott Schoelzel, will leave the firm at the end of the year. Ron Sachs will succeed him. Shares of the Denver-based company surrendered 4.4% to close at $26.19.
jumped 5.8% after offering $500 million in convertible redeemable preferred stock, in addition to a 15% overallotment option. Shares climbed 65 cents to close at $11.81.
also traded up to reverse early losses after posting a narrower-than-expected continuing-operations loss of 34 cents a share in the first fiscal quarter. The Kansas City, Mo., firm also tightened the lower end of its fiscal 2008 earnings outlook by a nickel to between $1.30 and $1.45 a share.
Block additionally reported that it expects to
the mortgage-origination operations at its Option One subprime unit, given that private-equity firm Cerberus said it only wants to buy the unit's loan-servicing platform. But shares rose 1.7% to close at $19.84 on the possibility that the deal could still close at all, even if at a reduced price.