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Sector Update: Financial

Posted
12/18/2013 3:45:00 PM
By: MT Newswires
Referenced Stocks:COF

Financial stocks are ending sharply higher with the NYSE Financial Sector Index up nearly 1.8% and the S&P Financial 100 Index advancing over 2.2%.

In company news, Capital One ( COF ) is ahead about 1.4% at $72.78 a share after today signing a three-year financing services agreement with the maker of Ski-Doo snowmobiles and other recreational vehicles.

The new contract with BRP US, the recreational products division of Canadian manufacturer Bombardier (BBD-B), covers revolving in-store financing for the company's Sea-Doo watercraft and Can-Am all-terrain vehicles as well as its Ski-Doo snowmobiles, side-by-side vehicles and Spyder roadsters sold by dealers in the United States.

The credit packages also can be used for accessories and include so-called life-of-loan products, allowing loans to be paid off over an extended period, and supporting special promotional interest-rate discounts.

In other sector news,

(+) CNO, Increases stock buyback program by $300 mln. Through Sept. 30, the insurer had repurchased $221.6 mln of its shares and was expecting to buy back another $28.4 mln in Q4. It had $128 mln remaining under its previous authorization.

(-) BNCN, Pares steeper losses earlier in session that followed announcement to acquire South Street Financial Corp and Community First Financial Group Inc for an undisclosed amount. BNCN said it expects deal to boost its FY15 per-share earnings by 12%.