Financial Sector Update for 06/13/2018: REXR,SMBC,HRB

Top Financial Stocks

JPM -0.21%

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Financial stocks were narrowly lower in subdued trading ahead of the expected quarter-point increase in interest rate Wednesday afternoon by the Federal Open Markets Committee, with the NYSE Financial Sector Index slipping almost 0.2% while financial companies in the S&P 500 Index also were falling just over 0.2%. The Philadelphia Housing Sector Index was dropping nearly 2.4% with the FOMC announcement due at 2 p.m. ET.

Among financial stocks moving on news:

+ Rexford Industrial Realty ( REXR ) was hanging on to a narrow gain after earlier Wednesday rising almost 1% and the real estate investment trust buying two single-tenant industrial properties in suburban Los Angeles for $42 million. It paid $30 million for a newly constructed 136,685-square-foot property in Compton, Calif., and $12 million for a 5.89-acre property in Irwindale, Calif., containing a 70,510-square-foot, fully leased building. Rexford funded the deals using a combination of cash on hand and draws on its credit line.

In other sector news:

- Southern Missouri Bancorp ( SMBC ) was narrowly lower Wednesday afternoon, dropping less than 1%, after announcing the $22.7 million acquisition of Gideon Bancshares, the 92% owner of the First Commercial Bank chain. Under terms of the proposed buyout, Gideon shareholders will receive 2.0486 Southern Missouri shares and $72.29 in cash for each of their shares. The deal will add 10 First Commercial branches in southeastern Missouri and $223 million in combined assets to Southern Missouri's 38 full-service locations, increasing its total assets to around $2.1 billion.

- H&R Block ( HRB ) dropped to a 14-month low on Wednesday, sinking over 21% to its lowest share price since April 2017 at $23.33 apiece, after the tax-preparation chain disclosed plans to close 400 offices and issued a downbeat FY19 forecast, upstaging better-than-expected Q4 financial results and a 4.2% increase in its quarterly dividend to $0.25 per share. The company expects to complete the office closings by the end of its fiscal Q2 in October and is taking a $15 million to $20 million charge against its FY19 earnings for lease buyouts. It also is projecting FY19 revenue in a range of $3.05 billion to $3.1 billion, lagging the Capital IQ consensus by at least $40 million. H&R Block earned $5.43 per share during the three months ended April 30, up from $3.76 per share during the year-ago period and topping the Street view by $0.16 per share. Revenue rose to $2.39 billion from $2.33 billion last year, also exceeding the $2.34 billion analyst mean.

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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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