Message Font: Serif | Sans-Serif
No. of Recommendations: 0


<<NEW YORK, June 22 (Reuters) - LaBranche & Co. (NYSE:LAB - news), a New York Stock Exchange trading firm, on Friday said it expects second-quarter profits to fall short of expectations because of the continued stock market slump.

The company, which acts as a share dealer for more than 500 Big Board stocks, forecast earnings of 26 to 30 cents per share.

Analysts polled by Thomson Financial/First Call expect LaBranche to earn 29 to 40 cents per share, with a mean estimate of 33 cents.

The lagging stock market -- which has seen a 0.7 percent drop in the Dow Jones industrial average (^DJI - news) and a 16.7 percent drop in the Nasdaq (^IXIC - news) so far this year -- has hamstrung trading desks throughout Wall Street. Morgan Stanley (NYSE:MWD - news), a top U.S. investment bank, on Thursday said its second-quarter earnings dropped 36 percent as the weak stock market hurt share-trading revenues.>>

LaBranche's warning also comes one day after Knight Trading Group Inc. (NasdaqNM:NITE - news), the largest Nasdaq share dealer, said it was considering cutting its U.S. stocks staff by 6 percent. Knight, which is also looking at other cost-cutting measures, said it had been hurt by the shift to trading stocks in pennies in place of traditional fractions.>>

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.