The financial sector fell beneath the sliding broad market Wednesday, clobbered by some disappointing earnings reports.
was hit particularly hard, with shares lately plunging 10.2%, after the New York lender swung to a
compared with a profit of $1.16 per share last year. The firm sustained a heavy charge related to its exit from the U.S. home-lending and construction business. CIT also cut its second-half per-share outlook by 25 cents to between $2.60 and $2.70. Shares were off $5.72 to $49.71.
became another casualty of the struggling housing sector after reporting it had doubled its second-quarter credit-loss provision to $587 million due to a
in its allowance for losses related to home-equity loans. Although total income rose 21.2% from last year to comfortably top expectations, shares dropped 3.7% to $48.07.
JPMorgan helped pull down the KBW Bank Index, which was recently sliding 2.1% to 113.03, as well as the
Financial Sector Index. That tracker lost 1.3% as student lender
, another component, got a black eye on a wide miss -- "core earnings" of $189 million, or 43 cents a share, compared with an analysts' mean target of 72 cents. Shares were down 1.5%.
, of Minneapolis, tumbled 9.6% after falling
of second-quarter Wall Street predictions, and
gave up 5.3% to $57.75 despite edging out estimates for that quarter.
were each falling at least 2% after Punk Ziegel
downgraded several brokers to sell
. The analyst cited the too-quick growth rate of the debt market, which he says exposes these firms to a large amount of risk.
was one of few financial winners Wednesday after the Alabama-based firm's majority owners offered to buy its remaining shares for $17.60 a share, or a premium of 15.8% to its latest close. Shares surged nearly 21% at $18.38.
earned $1.80 a share (adjusted) in the second quarter, or 12 cents more than the analysts' mean estimate, compared with $1.19 last year. Shares were adding $7.85, or 4.8%, to $172.