Updated from 2:26 p.m. EDT
The financial sector was mostly pulled down along with the major indices Wednesday, as inflation worries were stoked by rising gas prices and a further decline in U.S. reserves.
confirmed today it will
slash some 17,000 jobs
. The cuts are part of a larger restructuring effort that ultimately is projected to save around $2.1 billion in 2007.
Yesterday, the banking giant's stock lifted on reports the job cuts would happen soon, but
regarding the plan helped erase those gains today. Shares lost 60 cents, or 1.2%, to $51.80.
Citigroup was in good company.
( MER) shed 78 cents to $85.89, Atlanta's
sank 94 cents, or 1.2%, to $78.91 and
closed down 36 cents, or 1.6%, to $21.78.
Meanwhile, shares of
fell 3.4% to $30.14 after the
reported that the boutique investment bank, which went public only a few months ago, is planning on a secondary offering. Ohio-based
lost 2.6% to $25.66 on the resignation of chief financial officer Donald Landers. Executive VP of operations Carol Schneeberger will replace him in the interim.
On the sparser winning side,
American Home Mortgage Investment
( AHM) and online broker
garnered upgrades from AG Edwards and Friedman Billings, respectively. AHM climbed $2.10, or 10.7%, to $21.65; Ameritrade was up 3.8% at $16.22.
Nasdaq Stock Market
added 6 cents earlier in the day but closed down 23 cents to $29.40 after
The Wall Street Journal
reported it is
in talks to buy
the Philadelphia Stock Exchange. Commodities exchange Nymex
( NMX) closed a deal, first announced in January, to buy a 19% stake in energy derivatives broker
. Its shares recently rose 3.1% to $130.60.
More broadly, the KBW Bank Index, after sliding 0.8% earlier in the day, was up 0.8% to 114.57. The
NYSE Financial Sector Index
gave up 0.6% to 9488.97.