Nasdaq OMX, other financial stocks drop
NEW YORK (MarketWatch) -- Financial stocks declined on Tuesday, with
The S&P 500 closed down 0.4% on Tuesday, but gained 1.3% in July. The broader U.S. stock market moved lower after Bloomberg News reported that the German Finance Ministry said it saw no need to grant the European Stability Mechanism a banking license. Concerns about the euro-zone debt crisis overshadowed largely positive U.S. economic data, including a rise in consumer confidence in July. Read more about U.S. stock trading.
In the financial sector, Nasdaq OMX (NDAQ) shares retreated 2% as UBS (UBS) (UBSN) blamed the exchange operator for its lackluster second-quarter results. UBS said trading glitches during Facebook's (FB) initial public offering cost it 349 million Swiss francs ($357 million), far more than the $62 million Nasdaq had set aside to compensate all firms for their losses.
"We will take appropriate legal action against Nasdaq to address its gross mishandling of the offering and its substantial failures to perform its duties," the bank said. Read more on the planned lawsuit.
In other trading, shares of exchange operator
"The desire of many retail investors to remain on the sidelines amid growing economic uncertainty is hitting U.S. discount brokers hard, tempering the outlook for industry revenue growth," Fitch Ratings said in a statement on Tuesday.
In the second quarter, Charles Schwab reported that average daily trades fell by 10% sequentially, while E-Trade said average daily volume fell 6% year-over-year and 12% sequentially, according to Fitch.
Among the Dow Jones Industrial Average's