Financial Sector Update for 03/13/2018: QTS,WLFC,YIN,IVZ

Top Financial Stocks

JPM -1.35%

BAC -1.31%

WFC -0.84%

C -1.62%

USB -1.68%

Financial stocks fell Tuesday, with the NYSE Financial Sector Index dropping almost 0.9% while financial companies in the S&P 500 Index declined over 1.1%. The Philadelphia Housing Sector Index also was nearly 0.5% higher in recent trade.

In economic news:

Data released Tuesday morning showed a 0.2% increase in the consumer price index during February compared with the prior month, matching market expectations and slipping from a 0.5% increase in January. On a yearly basis, consumer have risen 2.2% since February 2017, also in-line with Wall Street estimates, according to Econoday, and showing a 0.1 percentage point rise over the 2.1% year-over-year increase reported in January. Excluding volatile fuel and food prices, core CPI was up 0.2% and 1.8% month over month and year over year, respectively.

Also, the National Federation of Independent Businesses reported its February small business optimism index at 107.6 vs. topping the consensus view expecting a 107.0 reading.

Among financial stocks moving on news:

+ QTS Realty Trust Inc. ( QTS ) rose Tuesday, climbing over 4% to touch a session high of $36.00 a share, after the real estate investment trust disclosed plans for a $100 million public offering of 4 million of its 7.125% Series A cumulative redeemable perpetual preferred stock priced at $25 apiece. The company will issue 30-day options to underwriters participating in the deal to buy up to 600,000 more of the preferred share. After deducting the underwriter discount and other offering expenses, QTS is expecting to pocket around $96.4 million in net proceeds, or rising to around $111 million if the underwriters exercise their options in full, and using those proceeds to repay a portion of its debt owed from its unsecured revolving credit facility and for other general corporate purposes.

In other sector news:

+ Willis Lease Finance Corp ( WLFC ) rose to a record high on Tuesday, climbing almost 3% to an all-time high of $29.36 a share, that followed the specialty lender reporting a 50.4% rise in pre-tax income to $36.0 million compared with $23.9 million during the 12 months ended Dec. 31, 2016. Total revenue grew 32.6% last year to a best-ever $274.8 million from $207.3 million in the prior-year period. No analyst estimates were available for comparison. The gains were supported by strong growth in its core aircraft-parts leasing business. Recent changes in federal tax law also contributed about $43.6 million to the company's after-tax income.

- Invesco ( IVZ ) has turned lower Tuesday afternoon, giving back a slightly more than 1% gain to a session high of $34.88 a share, that followed the investment manager reporting $945.4 billion in preliminary assets under management during February, falling 2.8% from $972.6 billion during February 2017. Invesco blamed the decline on unfavorable market returns along with adverse foreign exchange rates and long-term net outflows partially offset by rising money market assets.

- Yintech Investment ( YIN ) dropped almost 6% on Tuesday, sinking to a session low of $9.50 a share, after reporting lower Q4 net income and revenue compared with the same quarter in 2016. Excluding one-time items, the company earned RMB0.81, or about $0.13, per share during the three months ended Dec. 31, down sharply from a RMB6.69 per share adjusted profit during the prior-year period. Revenue fell to RMB386.1 million from RMB1.06 billion last year. The company also is projecting Q1 revenue in a range of RMB260 million to RMB280 million compared with RMB402.9 million in revenue during the first three months of 2017. Yintech also declared a quarterly cash dividend of $0.40 per American depository share, payable April 9 to shareholders of record on March 27.

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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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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