Top Financial Stocks
Financial stocks were ending higher, drifting slightly off their earlier session highs this afternoon, with the NYSE Financial Sector Index climbing over 0.5% while financial companies in the S&P 500 Index were advancing almost 0.9%. The Philadelphia Housing Sector Index was up more than 1.0%.
In economic news:
Retail sales rose for the first time since November during March, with the headline number topping expert opinion by climbing 0.6% compared with expectations looking for a 0.4% increase. Excluding auto and energy sales, the core rate grew 0.3%, matching Febraury's rise but trailing the consensus projection by 0.2 percentage points. Among the individual components, auto sales shook off an extended lull, growing 2.0% over February levels. Furniture sales increased 0.7% and non-store retailers enjoyed an 0.8% advance. Department-store sales pared the 0.9% decline they saw in February by two-thirds, slipping 0.3% in March while apparel stores dropped 0.8% last month.
Factory activity slowed in April throughout New York state, with the Empire State manufacturing survey retreating to a 15.8 reading this month from a 22.5 score in March and also missing the consensus view expecting an 18.2 April reading. But business inventories added 0.6% in February, unchanged from the prior month's growth and matching the Econoday consensus.
Among financial stocks moving on news:
+ Q2 Holdings ( QTWO ) was poised to finish moderately higher on Monday, climbing more than 1%, after the financial technology firm announced its partnership with StoneCastle Partners and the new launch Cambr, combining Q2's digital cloud-based CorePro platform and the 800 partner community banks in the StoneCastle Deposit Network. Cambr also includes strategic relationships with partner financial institutions serving as banks of record and now allowing those banks to offer banking products and services with full FDIC insurance coverage while creating a mutually beneficial partnership model for companies.
In other sector news:
+ Manhattan Bridge Capital ( LOAN ) was moderately higher on Monday, rising almost 2% after reporting Q1 net income and revenue matching the two-analyst consensus. The real estate finance company earned $0.12 per share during the three months ended March 31, up from $0.10 per share during the same quarter last year. Revenue grew to $1.7 million from $1.3 million last year. Analysts, on average, were expecting $0.12 per share on $1.7 million in revenue.
- Bank of America ( BAC ) fell Monday despite reporting Q1 net income and revenue exceeding Wall Street expectations. The banking and financial services company earned $0.62 during the January-to-March reporting period, topping the Capital IQ consensus by $0.02 per share. Revenue grew to $22.13 billion from $22.2 billion last year and also beating the $23.04 billion analyst mean.
- M&T Bank ( MTB ) was slipping Monday afternoon, reversing a 2% gain earlier in the session that followed the bank holding company reporting improved Q1 net income of $2.23 per share compared with $2.12 per share during the first three months in 2017 but still trailing the $2.77 per share Capital IQ consensus. Revenue rose to $1.43 billion from $1.36 billion last year, beating the $1.42 billion Street call.