Updated from 2:50 p.m. EDTAmerican Home Mortgage's ( AHM) plummet continued to drag down the financial sector Friday, as other lenders bore the brunt of a residual share-price beating. AHM, based in Melville, N.Y., announced last night that it's
Elsewhere, broker Knight Capital ( NITE) gave back 5.3% to $13.29, after announcing that Chief Financial Officer John Howard will leave, effective Aug. 10, to be replaced by company veteran Steven Bisgay. And Germany's Allianz ( AZ) reported a 13.7% per-share profit decline to $6.69 (4.85 euros) in the second quarter. Shares of the insurer surrendered 3.1% to $21. All but two of the above names were weighing on the NYSE Financial Sector Index, which tumbled 284.3 points, or 3.1%, to 8764.28. The KBW Bank Index lost 4.1% to 101.84. Insurance companies ranked among the scarce financial winners Friday, and among them was National Interstate ( NATL). Shares jumped 8.2% after the firm handily topped Wall Street estimates with income of $11.9 million, or 61 cents a share, vs. Thomson Financial's 52-cent consensus. Fellow insurer Odyssey Re ( ORH) reported a year-over-year earnings drop but still garnered an upgrade to buy at Ferris Baker Watts, and Meadowbrook Insurance ( MIG) was raised to aggressive buy at KeyBanc Capital Markets. Odyssey shares climbed 2.4% to $36.06; Meadowbrook was up 2% to $9.02.