NIRVANA!! <VBG> Of course credit card delinquency rates fell in the 2Q, they paid them with home loans. Given the rate of the refis then, why wasn't it more? These analysts are asking the wrong questions.
Financials weak on crude surprise
By Greg Morcroft, CBS.MarketWatch.com
Last Update: 12:39 PM ET Sept. 24, 2003
NEW YORK (CBS.MW) -- U.S. financial stock indexes fell in afternoon trading as a surprise move by OPEC to cut crude oil output spooked investors and trumped a generally bullish tone following recent strong brokerage earnings.
The Organization of Petroleum Exporting Countries unexpectedly agreed to shave its output ceiling by 900,000 barrels per day, prompting a rally in Brent crude that lifted prices by nearly $1 per barrel. See full story.
Rising oil prices can dampen economic growth.
Several analysts remained bullish on the nation's largest banks and brokerages, raising earnings estimates and price targets amid signs of improving capital business.
The AMEX Securities Broker/Dealer Index ($XBD: news, chart, profile)dipped 1.4 percent and the Philadelphia Bank Sector ($BKX: news, chart, profile) dropped 1 percent.
Analyst Andrew Collins at USB Piper Jaffray raised earnings estimates for Dow industrials components Citigroup (C: news, chart, profile)and J.P. Morgan Chase (JPM: news, chart, profile) as solid financial results from a number of major brokerage firms suggests capital markets strength is continuing.
He raised his estimate for Citigroup to 85 cents a share from 83 cents for the third quarter, to $3.35 from $3.30 for 2003 and to $3.75 from $3.70 for 2004. Collins upped his forecasts for J.P. Morgan to 75 cents a share from 63 in the third quarter and to $3 from $2.85 in 2003, and to $3.20 from $3.05 in 2004.
Citi shares fell 1.1 percent and Morgan shares lost 1.3 percent.
And, the number of consumers falling behind on their credit-card payments declined in the second quarter for the first time in a year, the American Bankers Association reported Wednesday.
The seasonally adjusted delinquency rate fell to 4.04 percent of all accounts in the second quarter from the record 4.07 percent in the first quarter.
In dollar terms, delinquencies remained at 4.51 percent of total outstanding debt balances.
Shares of companies with large credit card businesses traded mixed, as Providian (PVN: news, chart, profile) and American Express (AXP: news, chart, profile) fell 2.1 percent and 0.9 percent respectively.
MBNA Corp (KRB : news, chart, profile) fell 2.2 percent and Capital One (COF: news, chart, profile) shed 2 percent.
And, in the mortgage arena, the Mortgage Bankers Association of America said its mortgage loan applications index fell a seasonally adjusted 3.7 percent during the week ending Sept. 19, vs. a 5.8 percent drop the week before.
The average contract interest rate for a 30-year fixed rate mortgage declined 0.06 percentage points to 5.85 percent, according to MBA data. The number of mortgage applications for home purchases declined 7 percent, while applications for refinancings dipped 0.4 percent. Refinancings accounted for 51.9 percent of total applications, up from 49.9 percent the week before.
Stocks of savings and loans, whose primary business is home lending, mostly fell Wednesday. Washington Mutual shares dipped 3 cents to $39.13, GreenPoint Financial shed 1.1 percent and Astoria Financial fell 1.3 percent. |
