Financial Sector Update for 06/04/2018: RBS,CHSP,WFC,REXR

Top Financial Stocks

JPM +0.06%

BAC +0.02%

WFC +0.27%

C +0.18%

USB +0.31%

Financial stocks were adding to their prior gains late in Monday trading, with the NYSE Financial Sector Index rising more than 0.5% while financial companies in the S&P 500 Index were climbing slightly more than 0.4%. The Philadelphia Housing Sector Index was also nearly 0.4% higher this afternoon.

Among financial stocks moving on news:

- Royal Bank Scotland ( RBS ) was more than 1% lower on Monday, reversing a small gain earlier in the session, following reports the UK government plans to Tuesday sell 925 million of its shares in the state-owned lender. Sale of the 7.7% stake should generate around GBP2.6 billion, or about $3.46 billion, based on Monday's closing price for the stock on the London Stock Exchange, with the offering price announced Tuesday morning. Following the overnight stock sale, the UK government's stake will slip to 62.4% from 70.1% currently.

In other sector news:

+ Chesapeake Lodging Trust ( CHSP ) was ending fractionally higher after the real estate investment trust Monday agreed to sell the 200-room Hyatt Centric Santa Barbara in southern California for $90 million. The sale price represents about $450,000 per key, or 47.5% above the $305,000 per key the trust paid when it acquired the property for $61 million in June 2013. Chesapeake did not identify the buyer but said the deal is slated to close within the next 60 days.

- Wells Fargo ( WFC ) declined Monday, giving up a small gain earlier in the session after reports the third-largest U.S. bank is planning to transfer some of its employees now in London to new post-Brexit hubs in Paris and Dublin. The bank has not made a final decision about its upcoming moves and Wells Fargo executives are said to be weighing a range of factors, including regulation and costs, according to people familiar with the situation. It's also unclear how many jobs may be moved, the sources said. The bank currently has around 1,200 employees in London along with another 170 employees in Dublin and about 30 Paris employees.

- Rexford ( REXR ) was tilting lower Monday afternoon, slipping almost 1%, after the real estate investment trust said it purchased a 91,616-square-foot industrial property in Torrance, Calif., for $14 million. The property is currently leased to a single tenant and Rexford said it financed the transaction using a combination of cash on hand and borrowings from its line of credit.

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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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