Sector Update: Financial

By Staff,

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Financial stocks are padding their narrow gains from earlier in today's session with the NYSE Financial Sector Index rising 0.4% and the S&P Financial 100 Index advancing 0.4% shortly before the closing bell.

In company news, Wells Fargo & Co. ( WFC ) is up nearly 1% in late Wednesday trade at $42.64 and the company's chief financial officer today saying he expects the U.S. mortgage market to stabilize next year.

Speaking at a Bank of American Merrill Lynch investor conference, Timothy Sloan said mortgage activity looks to improve in 2014 as refinancing volume gives way to home purchases, according to reports by the Wall Street Journal and other news outlets covering the event.

WFC reported a 43% drop in mortgage banking income during Q3 compared to year-ago levels.

Sloan also said low, short-term interest rates will continue to pressure the bank's net interest margin - a key measure of lending profitability. But a rise in deposits could offset that pressure, he adds.

In other sector news,

(+) EARN, Reports core Q3 earnings of $0.61 per share, up from $0.21 in the year-ago period and beating analyst expectations by $0.09 per share. Net interest income rises 163% year over the same quarter last year to $9.98 mln.

(-) APTS, Prices public offering of 3.87 mln shares of its common stock at $7.75 apiece. Proceeds will be used to repay outstanding debt under the company's existing senior secured revolving credit facility.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: WFC

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