The Wall Street Journal-20080126-PrivateBancorp Falls 6-5-- Ambac Gains 13-
Return to: The_Wall_Street_Journal-20080126
PrivateBancorp Falls 6.5%; Ambac Gains 13%
Choppy declines that bookended the week, including a sharp drop for financials and retailers Friday, couldn't fully erase the erratic gains from midweek as small-caps broke a string of four straight weekly declines.
The Russell 2000 index of small-capitalization stocks closed down 4.12 points, or 0.6%, at 688.60. For the week, the Russell closed up 15.42, or 2.3%.
The Standard & Poor's SmallCap 600 closed down 2.30, or 0.6%, at 360.15. For the week, the S&P 600 is up 9.55, or 2.7%.
Financial stocks weighed heavily on the Russell on Friday, with many on Wall Street expecting the sector to get even worse by the end of the year. Notable laggards Friday were PrivateBancorp, off $2.26, or 6.5%, at $32.60, and Columbia Banking, down 2.45, or 9%, to 24.77, after the bank holding company posted a fourth-quarter profit decline on a litigation charge. Another decliner was FirstFed Financial, which dipped 2.93, or 7.5%, to 36.07, on the New York Stock Exchange. The Santa Monica, Calif., bank holding company posted a fourth-quarter profit decline of 75% on an increased loan loss provision and losses on real estate operations.
Several consumer-oriented stocks fell, as concerns percolated that the government's fiscal stimulus package wouldn't fully halt the recent slowdown in spending. Anxiety on consumer spending drove down stock prices for Zumiez, down 1.78, or 9%, to 17.44, and Volcom, off 2.15, or 10%, at 18.51.
On the heels of an uptick in the price of oil, off three-month lows, oil services continued to fall.
Among the oil services companies in the red Friday were World Fuel Services (NYSE), off 94 cents, or 4%, to 24.90, and Superior Well Services, down 21 cents, or 1%, to 19.63.
Bond insurers continued to be in the news with the Evening Standard in London reporting that Wilbur Ross may acquire Ambac Financial, which closed trading up 21 cents, or 1.9% to 11.54, on the NYSE. MBIA finished trading down 20 cents, or 1.4%, to 14.20 while Security Capital closed up 34 cents, or 13%, at 2.97, both on the NYSE.
Guaranty Financial Group rose 1.63, or 13%, to 14.10, on the NYSE. Billionaire investor Carl Icahn reported a 9.77% stake in the Dallas bank holding company and said he believes the company's stock is undervalued.
Stillwater Mining (NYSE) jumped 2.05, or 25%, to 10.41, on high prices for platinum and palladium.
