A Foreclosure Ruling and Disappointing Jobs Report Hurt Shares

Stocks fell Friday after a court ruling in a foreclosure case prompted investors to pull out of bank stocks, adding to weakness after a lackluster jobs report.

ven with the decline, however, the Standard & Poor’s 500-stock index and the Dow Jones industrial average recorded their sixth consecutive week of advances.

Wells Fargo and U.S. Bancorp lost a ruling by the Supreme Judicial Court of Massachusetts, which said the banks failed to show they held the mortgages at the time they foreclosed.

The court decision is the latest on the validity of foreclosures conducted without full documentation, and the mortgage fiasco could prove costly for the banks. The news turned the market lower, but some said the reaction was overdone.

“Financials have really been a leader in the market in recent weeks — this could close that sector out,” said Nick Kalivas, senior equity index analyst at MF Global in Chicago.

Shares of Wells Fargo fell 65 cents, or 2 percent, to $31.50, and US Bancorp eased 20 cents, or 0.76 percent, to $26.09. The KBW Bank index lost 0.9 percent.

A Court Ruling and Weak Jobs Report Hurt Shares.

This entry was posted in Foreclosure. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Both comments and trackbacks are currently closed.
  • LH&M is considered a debt relief agency.
    LH&M helps people file for bankruptcy relief under the Bankruptcy Code.

    Attorney advertisement. Prior results do not guarantee a similar outcome.