CIT Group (NYSE: CIT)
CIT Group was off to what seemed to be an overwhelmingly strong day in the market today. When the trading session opened, the stock was already trading green. From there, it started moving further and further upward. However, minutes ago, we started to notice a downward spike on the stock. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to CIT ahead.
What We’re Seeing From CIT
As mentioned above, CIT Group was off to what looked like a strong day in the market today. At the opening bell, the stock was already trading in the green and looking to go higher. Throughout the morning, we saw a continuation of positive movement, causing stronger and stronger gains. Unfortunately however, minutes ago, the stock took a turn for the worse as it started spiking downward. At the moment (10:29), CIT is trading at $41.83 per share after a gain of $0.38 per share (0.92%) thus far today.
Why The Stock Spiked Downward
In this case, our partners at Tradespoon were the first to alert us to the downward spike on CIT. As soon as they did, the CNA Finance team went to work to figure out just what was causing the movement. Unfortunately, we seem to have found what we were looking for, and it’s not good news. It seems as though the downward spike is the result of a possible investigation.
At the moment, there’s a rumor circling social media, that, if true, could prove to be very bad news for CIT Group. That rumor is that the company is under investigation by the New York Attorney General with regard to servicing practices. At this point, the rumor is unconfirmed. Nonetheless, if it is true, it can’t be good. The rumor also suggests that Nationstar Mortgage Holdings (NSM) is under investigation.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on CIT. In particular, we’re interested in learning whether or not there is any validity to this rumor. We’ll keep a close eye on the news and be sure to update you as it breaks!
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[Image Courtesy of Wikimedia]