E.F. Hutton and Salomon Inc., two of...

E.F. Hutton and Salomon Inc., two of Wall Street’s top financial firms reported that their second-quarter earnings were hit by a May squeeze in the government bond market. Hutton said the trading loss in May pushed the brokerage and investment banking firm into the red for the quarter. It posted a loss of $4.7 million, compared to a 1985 profit of $25 million. Salomon, parent company of Salomon Bros., had a profit of $117 million for the quarter, down from $145 million last year, partly because of the trading losses related to the May squeeze.