Wednesday's Financial Winners & Losers - TheStreet

Wednesday's Financial Winners & Losers

CIT Group falls after swinging to a quarterly loss.
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The financial sector fell beneath the sliding broad market Wednesday, clobbered by some disappointing earnings reports.

CIT Group

(CIT) - Get Report

was hit particularly hard, with shares lately plunging 10.2%, after the New York lender swung to a

70-cent-per-share loss

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.

JPMorgan Chase

(JPM) - Get Report

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

big increase

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

Sallie Mae

(SLM) - Get Report

, 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%.

Piper Jaffray

(PJC) - Get Report

, of Minneapolis, tumbled 9.6% after falling

far short

of second-quarter Wall Street predictions, and


(CMA) - Get Report

gave up 5.3% to $57.75 despite edging out estimates for that quarter.


Goldman Sachs

(GS) - Get Report


Merrill Lynch


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.



(ALFA) - Get Report

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.



(BLK) - Get Report

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.