Updated from 2:33 p.m. EDT
Financial stocks were mired far under the wobbly broad indices Wednesday, as the
recent tribulations of
American Home Mortgage
( AHM) continued to bog down the sector's mood.
Shares of AHM recovered marginally from yesterday's roughly 90% nosedive, rising 42.3%, but other names, such as
, were hit hard regardless of positive news.
The credit-card issuer
plunged 6.7% in heavy trading despite topping Wall Street's expectations with second-quarter income of $1.43 a share. Analysts polled by Thomson Financial had sought only $1.33 a share, but MasterCard stock closed down $10.80 to $150.
San Francisco broker
Thomas Weisel Partners
( TWPG) posted non-GAAP earnings of $7.7 million, or 29 cents a share, to smash earnings estimates. Credit-ratings firm
likewise came in ahead while authorizing a $2 billion share-repurchase program. Still, Thomas Weisel lost 7.8%, and Moody's traded in the red before rising 3% to close at $55.39.
Advance America Cash Advance Centers
( AEA), of Spartanburg, S.C., plummeted nearly 19.3% to $11.84 after a Pennsylvania court ordered the lender to "suspend its current operations and to discontinue its 'Choice Line of Credit'" in that state, concluding a lawsuit brought by the Pennsylvania Department of Banking regarding certain regulatory infractions. The company says it will appeal and that it "has no plans to shut down its centers in Pennsylvania."
In brokerage research,
Crystal River Capital
( CRZ) shares fell 16.2% after A.G. Edwards cut the mortgage-investment firm to hold from buy, primarily citing the shaky state of the mortgage-lending market. JPMorgan Chase lowered student lender
to neutral from overweight; First Marblehead closed up 1.6% at $33.48.
rose 30 cents to $24.31 after five analysts began coverage of the newly public asset manager with positive ratings (while Wachovia, the anomaly, granted a rating of market perform). New York asset manager
gave up 5.5% to $17.93 despite a new buy rating courtesy of Deutsche Securities.
Financial Sector Index, which tracks most of the above stocks, fell 24.19 points, or 0.3%, to 9008.35. The KBW Bank Index rose 0.7% to 105.80.
Among the few lucky players today was
Pacific Capital Bancorp
, which vaulted 8.6% to $22.70 after second-quarter income ballooned year over year to $21 million, or 44 cents a share excluding items. The Street had expected 30 cents a share. The Santa Barbara, Calif., company also said it will repurchase up to $25 million of its shares to replace its old buyback program.
( AOC) strolled past the mean second-quarter earnings estimate and announced that it's currently preparing to spin off its Combined Insurance Company of America unit while not ruling out expected "inquiries from potential buyers." Shares climbed $1.95, or 4.9%, to $41.99.
American Financial Group
, beat Wall Street estimates by a dime with core operating income of 93 cents a share, and asset manager
also turned in an easy EPS beat. Shares of the firms added 10.2% to $30.96 and 7.9% to $39.96, respectively.