Sector Snap: National banks trade higher

Wachovia traded higher even after the Charlotte, N.C.-based bank said Tuesday it lost $8.86 billion, or $4.20 per share, amid weakening in its loan portfolio. Only weeks ago, Wachovia expected the loss to range between $2.6 billion and $2.8 billion for the quarter.

In afternoon trading, Wachovia shares rose 21 cents to $17, adding to the more than 27 percent in gains the bank posted Tuesday.

Washington Mutual shares fell 8 cents to $5.74 in early afternoon trading.

After the market closed Tuesday, Seattle-based Washington Mutual said it lost $3.33 billion, or $6.58 per share, compared with a profit of $830 million, or 92 cents per share, in the year-ago period. Excluding a previously announced one-time reduction, the loss per share was $3.34.

Analysts polled by Thomson Financial, on average, expected a loss of $1.05 per share.

Like most other banks, Washington Mutual was hit hard by deterioration in the mortgage market. Washington Mutual set aside $5.91 billion during the second quarter to cover bad loans.

Elsewhere, shares of Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co.--which all beat analysts expectations when reporting second-quarter results over the past week--all rose Wednesday afternoon.

Shares of national banks have mostly been rising throughout the week along with the broader market as oil prices have retreated and investors were upbeat profit reports.

Bank of America shares rose 5 cents to $32.40.