Financial Sector Update for 08/06/2018: BCS, SYF, WMT, HSBC, GS

Top Financial Stocks

JPM -0.02%

BAC 0.00%

WFC +0.08%

C -0.01%

USB -0.16%

Financial stocks were ending broadly higher on Monday, including a more than 0.4% advance for the NYSE Financial Index while shares of financial companies in the S&P 500 were racing just over 2.0%. The Philadelphia Housing Index also was rising almost 0.6%.

Among financial stocks moving on news:

- Barclays ( BCS ) was down less than 1% in late Monday trading, climbing to its best levels of today's session and trimming earlier losses that followed UK regulators reportedly taking legal action against the bank after it again failed to remind payment protection insurance customers about their policies. The UK's Competition and Markets Authority filed suit against the bank alleging it did not send reminders to 2,265 of its Littlewood credit card PPI customers between October 2016 to October 2017, as required. Barclays blamed the glitch on a technical problem in transferring customers to its computer system.

In other sector news:

+ Goldman Sachs ( GS ) was edging higher Monday afternoon, rising almost 1% and reversing a small decline earlier in the session that followed the incoming CEO of the bulge-level investment bank reportedly will soon name Jim Esposito to be the global co-head of its trading unit. He previously was the co-chief operating officer of Goldman's fixed income business.

- Synchrony Financial's ( SYF ) was 1% lower Monday afternoon, giving back a small gain soon after the opening bell that followed analysts at Oppenheimer saying the company will "very likely" lose Sam's Club as a client after corporate parent Walmart ( WMT ) recently dropped the private label credit card issuer. The brokerage sees Walmart's move creating profit headwinds for Synchrony, adding it also expects Synchrony to lower its economic hurdles in a bid to retain Sam's Club as a client. "Either way, it suggests lower go-forward profitability," Oppenheimer concluded in a new research note Monday.

- HSBC ( HSBC ) declined almost 2% on Monday after the London-based banking group agreed to pay $765 million to settle a probe into its sales of mortgage-backed securities in the run-up to the 2007-2008 financial crisis. It also reported a Q2 pre-tax profit attributable to its ordinary shareholders of $4.09 billion, improving on a $3.87 billion pre-tax profit during the year-ago period. Revenue rose to $13.58 billion from $13.17 billion last year but still trailed the Capital IQ consensus expecting $13.90 billion in quarterly revenue.

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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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