S&P 500
7,510.80
-0.11%
Dow Jones
52,419.00
-0.20%
Nasdaq 100
29,253.80
-0.02%
Russell 2000
2,948.91
-0.09%
FTSE 100
10,460.80
-0.48%
Nikkei 225
66,867.60
-0.29%

Banking, finance, and taxes

Financial Junk Acting Independently (CIT, FNM, FRE, ABK, AIG, ETFC)

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published

Invalid Image
CIT Group, Inc. (NYSE: CIT) is back to looking like its shares the paper they are printed on could be less valuable and less useful than toilet paper.  What is surprising is that this is not killing the other junky actively financial stocks.  CIT is down almost 40% at $1.46 on over 32 million shares on reports that it is close to collapsing, and that is before the market is even open. Common logic would dictate that this relation of one moving the others would be the case.  But junk under one roof is valued differently than junk under another roof.

Right before the open, there are many of the other junky financial stocks that are flat or trading up.  Fannie Mae (NYSE: FNM) is flat at $1.56 on less than 500,000 shares, while Freddie Mac (NYSE: FRE) is down 0.5% at $1.84 also on under 500,000 shares.  Ambac Financial Group, Inc. (NYSE: ABK) is actually up 1% at $1.80 on only 30,000 shares.

American International Group, Inc. (NYSE: AIG) is actually up 1.5% at $45.90, and on only 230,000 shares.  E*TRADE Financial Corp. (NASDAQ: ETFC) is down about 2% at $1.76 on 3.3 million shares.

Maybe this tie won’t have any correlation now that we are getting closer and closer to the financial recovery. If there is not going to be correlation among all the junky names as a group even if in unrelated financial sectors, then the buyers are still around.

JON C. OGG

Contact [email protected] for any questions or corrections.

Follow 24/7 Wall St. on Google
Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Earnings Previews: FuelCell Energy, GameStop, Signet Jewelers, Trip.com
Chris Lange |

Earnings Previews: FuelCell Energy, GameStop, Signet Jewelers, Trip.com

Earnings reports due out Wednesday afternoon and Thursday morning include those from FuelCell Energy, GameStop, Signet Jewelers and Trip.com.

Douglas A. McIntyre |

Financials Right Under Key Technical Alert Levels (BAC, JPM, WFC, GS, C, FAS, XLF, FAZ)

Earlier this week came an alert that a technical event was likely to be seen in the major money center…

Jon C. Ogg |

The 24/7 Wall St. 2012 Model Dividend Portfolio (AEP, AWK, T, GE, GOV, KMB, SNH, WMT, JNK, AMJ, AMLP, PGF, MO, DLR, EPD, KMP)

It seems that most investors have started adding income or dividend reinvestment plans to their portfolios by using dividend stocks.…

Douglas A. McIntyre |

More Reverse Splits, or Just Closure, Possible or Needed in ETFs (FAS, FAZ, UYG, BAC, BHH, ARBA, IIH, AKAM, VRSN, UNG, USO, GLD, SDS, SPY, NYX, NDAQ)

We have been large fans of exchange-traded funds, exchange-traded notes, and other exchange-traded instruments which are open for trade throughout…

Douglas A. McIntyre |

CIT Highlights Risks in Junkier Financial Stocks (CIT, FNM, FRE, ABK, C, ETFC, AIG, PMI)

It is of little surprise that CIT Group, Inc. (NYSE: CIT) is seeing clobbered today.  The company has finally filed…

Douglas A. McIntyre |

Ten Companies That Will Never Trade At Their All-Time Highs

Some of the best known publicly traded companies in the world have stocks that will never reach their all-time highs…

Jon C. Ogg |

Weyerhaeuser and the Questionable Home Builder Sale

ThinkstockWeyerhaeuser Co. (NYSE: WY) soon will be a paper and forestry company that is merely a paper and forestry company,…

Stock Markets and Volatility: When the Tail Wags the Dog — and Yes, It Did
Jon C. Ogg |

Stock Markets and Volatility: When the Tail Wags the Dog — and Yes, It Did

24/7 Wall St. wanted to outline just how complicated the world of volatility and the "short volatility" can be. If…

Jon C. Ogg |

Junk Bonds At Critical Juncture, Dividends & Yields Galore (JNK, HYG, PHB, HYV, PHT, PHK, AWF, HIX, HIO)

Junk bonds, or high-yield bonds are at a level that all income investors need to be paying attention to.  After…

Top Gaining Stocks

FactSet Research Systems
FDS • Vol: 929,614
Gartner
IT • Vol: 1,375,344
Intuit
INTU • Vol: 6,564,709
Valero Energy
VLO • Vol: 2,870,552
Paycom Software
PAYC • Vol: 620,867

Top Losing Stocks

Coterra Energy
CTRA • Vol: 73,319,495
Oracle
ORCL • Vol: 56,688,573
Intel
INTC • Vol: 100,754,655
Lam Research
LRCX • Vol: 9,770,514
ON Semiconductor
ON • Vol: 9,568,853