Financial Stocks Rally in Market Rebound; MBIA Up Over 10% After Q4 EPS Beat
Top Financial Stocks
Financial stocks rebounded strongly Tuesday with the NYSE Financial Sector Index advancing 1.7% and the S&P Financial 100 Index gaining nearly 2.0%.
In company news, MBIA Inc. ( MBI ) shares were sharply higher Tuesday, rising to a 6-month high after posting Q4 earnings that beat analyst estimates by a wide margin.
The bond guaranty company earned $0.68 per share during the three months ended Dec. 31, excluding non-recurring items, beating the the Capital IQ consensus by $0.51 per share.
MBI executives said they have seen a continued trend toward lower volatility since Q3, adding the company had nearly $6 billion of exposure related to commercial mortgage-backed securities and corporate collateralized debt obligation terminate after the end of Q4. Reduced litigation, debt and staffing levels also helped to improve the Q4 results, the company said.
Shares were up 10.6% at $14.73 shortly before the closing, earlier advancing to an intra-day high of $14.87, matching some of its best levels since early August. The stock has a 52-week range of $8.73 to $16.15 a share.
In other sector news,
(+) LM, Shares climb to some of their best levels in nearly six years after the brokerage and asset manager moved to expand its portfolio of investment products, announcing a deal to acquire privately held QS Investors. Terms were not disclosed.
(-) COWN, Announces plans to offer $125 mln of cash convertible senior notes due 2019 to qualified institutional investors. A portion of the proceeds will buy back $25 mln of COWN shares in a deal closing concurrently with the notes offering.