Updated from 2:10 p.m. EDTA dollop of negative analyst research Monday helped to drag on the financial sector, which generally traded under the broad indices. Barclays ( BCS) was among the individual losers in that regard, sinking 3.9% after Bear Stearns cut the Britain-based bank to underperform. The analyst said that Barclays will likely join the crowded ranks of financial stocks feeling the sting of recent credit-market disruptions, given certain consistent negative trends in other big investment banks as revealed through fresh third-quarter results. Barclays shares closed down $1.98 to $49.37 to weigh on the NYSE Financial Sector Index, which lost 69.65 points, or 0.8%, to 9149.98. The KBW Bank Index slid even lower -- 1.6% to 106.72 -- partially pressured by losses of 1.5% or more at JPMorgan ( JPM), Capital One ( COF) and Zions Bancorporation ( ZION). Dime Community Bancshares ( DCOM), meanwhile, was lowered to sell at Stifel Nicolaus. Shares of the Brooklyn, N.Y.-based savings bank were off 80 cents, or 5.2%, to $14.70. Flagstar Bancorp ( FBC) also dropped after projecting in a conference call that the bank's loan-loss provision will rise by $12 million to $14 million in the third quarter, primarily due to higher rates of delinquencies in its commercial real-estate portfolio. Flagstar also cited difficulties in selling its non-agency mortgage loans, saying it has "curtailed" the origination of those loans "until such time as the secondary market for those products normalizes." CEO Mark Hammond emphasized that Flagstar sees these challenges as being short term in nature, but shares were down 9.2% at $11.65.