MarketWatch
Shares of transaction processing firm First Data Corp rose on Tuesday after news that the company's Western Union unit, which will be spun off to shareholders, is to be added to the S&P 500 index on Friday.
Standard & Poor's on Monday said Western Union will replace Andrew Corp. in the S&P 500 after the market's close on Friday.
First Data shares (NYSE: FDC - News) shares rose 2.8% to close at $41.65.
Shares of Piper Jaffray Cos. slipped almost 7% Tuesday after Wachovia analysts downgraded the regional broker's shares.
Wachovia lowered its rating on Piper Jaffray (NYSE: PJC - News) to market perform from outperform, saying it made the move based on the stock's recent run-up as well as "buyback benefits likely being accrued in the stock."
The analysts said that while its backlogs in mergers and acquisitions and in initial public offerings remain strong, Piper Jaffray's return on equity may be constrained for the next 12 to 18 months as it deploys new capital.
"We believe PJC shares will trade within the range of $66 to $68 per share, or 1.7 times our estimated third-quarter tangible book value," the Wachovia report concluded.
The shares fell $4.51, or 6.8% to close at $61.45.
In the broader financial sector, the Amex Securities Broker/Dealer Index rose 1.1%, while the Philadelphia Bank Sector Index added 0.3% and the S&P Insurance Index added 0.5%.
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