Dow drop takes mortgage stocks with it
Publicly traded mortgage firms couldn't escape the Dow Jones Industrial Average 512-point drop Thursday to close at 11,383, the largest single-day decline since December 2008. Publicly traded mortgage insurance companies took perhaps one of the sharpest downturns with The PMI Group (PMI) closing down more than 50% in Friday. The nation's largest mortgage lenders all lost ground on the day. Bank of America (BAC) led the way down to the lowest level for the bank since the middle of 2009, followed by Citigroup (C), Ally Financial (GJM), Wells Fargo (WFC) and JPMorgan Chase (JPM). The nation's big homebuilders saw their stock dip between 4% and 8% with PulteGroup (PHM) taking one of the biggest hits, and Toll Bros. (TOL) coming in at a softer drop at close. Mortgage REITS faired similarly with American Capital Mortgage Corp. (MTGE), which began trading Thursday, recording a pretty rough IPO, down about 8% in first-day trading. Annaly Capital Management (NLY) and Redwood Trust Inc. (RWT) were both down, but less than 5%. Investment banks, including Goldman Sachs (GS) and Morgan Stanley (MS) also closed down significantly on the day.