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Tuesday's Bank Stocks: Investors sell and banks sink

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Tuesday's Bank Stocks: Investors sell and banks sink

Bankand thrift stocks fell to losses as broader markets traded lower in a volatile dayof trading Tuesday, May 3.

TheSNL U.S. Bank Index dropped 1.94% to 402.31, and the SNL U.S. Thrift Index declined1.39% to 785.87.

Broadermarkets sank at the open and stayed well into negative territory throughout theday. The sell-off came despite a strong data report on housing from CoreLogic. Thecompany reported that U.S. home prices, including distressed sales, were 6.7% year-over-year during March.Compared to February, home prices, including distressed sales, were up 2.1%. "Itwas a really good report — there's no question about it," Joel Naroff, thepresident of Naroff Economic Advisors, said in an interview. He added that the reportwas a good sign for the economy moving forward this year, and that the rising priceswould eventually help move housing inventory that has stagnated since the financialcrisis.

He addedthat the falling broader markets were likely again moving in conjunction with themovement of oil prices, which fell on the day, and that investors may need to begindiscounting the market's movements on days where even strong economic reports canlead so sharp downward turns. "It's hard to take the day to day changes seriouslyif it's just an oil move," Naroff said.

The DowJones Industrial Average shed 0.78% to 17,750.91, the S&P 500 retreated 0.87%to 2,063.37 and the Nasdaq composite index tumbled 1.13% to 4,763.22.

Large-capbanks fell during the day. Bank of AmericaCorp. slid 2.78% to $14.36. The company announced that it had settleda long-running group of complaints filed by the Federal Home Loan Bank of Seattlefor $190 million. The company said substantially all of that amount was previouslyaccrued.

tumbled 1.93%to $62.56, and Wells Fargo & Co.was down 1.17% to $50.00 by the end of the day.

disclosed in its Form10-Q that some investors had filed a lawsuitalleging mismanagement in the collapse of the residential MBS market that triggeredthe 2008 recession. It also disclosed a new lawsuit related to a fraud investigationinto the company's Banamex unit. Shares of the companyfell 2.38% to $45.57 on the day.

lost 2.94% to $61.06on the day, Capital One Financial Corp.slid 2.19% to $71.97 and Bank of NewYork Mellon Corp. shares closed at $39.81 down 2.35%.

GreenBay, Wis.-based Nicolet BanksharesInc. slipped 0.90% to $45.09 in the first trading session after thecompany announced that it had completedits merger with Sturgeon Bay, Wis.-based BaylakeCorp.

Amongthrifts, New York Community BancorpInc. shed 2.32% to $14.76 and TFSFinancial Corp. (MHC) was down 0.55% to $18.17.

Market prices and index valuesare current as of the time of publication and are subject to change.