Financial Sector Update for 01/02/2018: IBKR,NETE,SNH

Top Financial Stocks

JPM +0.86%

BAC +1.02%

WFC +0.48%

C -0.16%

USB +0.72%

Financial stocks were straddling their break-even marks to begin the new year Tuesday, with the NYSE Financial Sector Index rising less than 0.1% while financial companies in the S&P 500 Index were falling almost 0.3%. Also, the Philadelphia Housing Sector Index was up 0.4% this afternoon.

In economic news:

U.S. manufacturing activity grew by 1.2 points over the prior month to a 55.1 reading during December, adding slightly to the 55.0 flash reading for the Markit purchasing managers index earlier last month. The December final reading reflects an acceleration in new orders and production growth as well as a rise in backlogs to a two-year high and employment reaching a three-year high last month. Business confidence was described as robust. Input costs rose on supply chain delays during December although the increase in selling prices slowed somewhat. The report also found marginal growth in export sales.

Among financial stocks moving on news today:

+ Interactive Brokers Group ( IBKR ) has eased from its mid-morning peak, giving back most of a 1.5% gain, after the discount broker today reported an 18% jump in daily average revenue tradesto 699,000 during December compared with the same month in 2016. The number of total customer accounts grew 25% year over year to 483,000, also climbing 2% over November levels. Total client equity jumped 46% over December 2016 to $124.8 bln.

In other sector news:

+ Net Element ( NETE ) rose as much as 39% on Tuesday, ending a six-day slump for its stock, after the financial-technology company today announced a $7.55 mln private placement of restricted common stock and warrants to support blockchain development at the company. The buyers, Esousa Holdings LLC, purchased 350,533 shares at $11.245 apiece in the Dec. 29 deal, a 3.4% discount to the stock's Dec.28 closing price. It also received warrants to buy up to 210,320 additional shares at $11.12 each.

+ Senior Housing Properties Trust ( SNH ) was trading higher after the real estate investment trust this morning said it expects to pocket $308 mln from the sale of four of its senior living communities. The facilities contain a combined 1,179 living units and are leased to Sunrise Assisted Living through Dec. 31, 2023.

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

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