Financial Sector Update for 08/07/2018: BR,ICE,V,Z,ZG

Top Financial Stocks

JPM +0.49%

BAC +0.17%

WFC +0.25%

C +0.33%

USB +0.69%

Financial stocks were ending with moderate gains on Tuesday, including a nearly 0.3% advance for the NYSE Financial Index while shares of financial companies in the S&P 500 were climbing almost 0.6%. The Philadelphia Housing Index also was rising nearly 0.7%.

In economic news:

Job openings edged higher during June, with the Labor Department reporting an increase of 3,000 to 6.662 million opening last month from an upwardly revised 6.659 million job openings in May. The latest Job Openings and Labor Turnover Survey topped the Wall Street consensus expecting a 12,000 rise over the 6.638 million openings originally reported for May to 6.65 million job openings. Hirings fell by 96,000 during June to 5.651 million new employees following a 166,000 rise to an upwardly revised 5.747 million new employees in May.

Among financial stocks moving on news:

+ Broadridge Financial Solutions ( BR ) jumped over 11% to a record $129.64 a share on Tuesday after the investor relations company for the financial industry reported improved non-GAAP fiscal Q4 net income that also surpassed Wall Street forecasts. Excluding one-time items, it earned $1.86 per share, up from $1.71 per share in the year-ago period and topping the Capital IQ consensus by $0.01 per share. Total revenue fell 2% year over year to $1.32 billion from $1.35 billion in the year-ago period but still narrowly beat the $1.316 billion analyst mean. It also is projecting an increase in its adjusted FY19 net income of 9% to 13% over the prior year and total revenue growth of between 5% to 7%.

In other sector news:

+ Intercontinental Exchange ( ICE ) rose Tuesday, climbing about 1.5%, after earlier pricing a combined $2.25 billion private placement of several series of new senior notes. The operator of financial and commodity exchanges issued $400 million of its 3.45% senior notes due 2023 as well as $600 million of its 3.75% senior notes due 2028 and $1.25 billion of 4.25% senior notes due 2048. Net proceeds will used for general corporate purposes.

+ Visa ( V ) climbed almost 1% on Tuesday after the credit-card issuer said it invested an undisclosed amount in Behalf, an Israeli start-up that supports small-business growth with easy-to-access funding and loans. As part of its investment, Visa also is making a tokenized Visa virtual card providing instant financing for business purchases available to Behalf clients, beginning first in the United States and spreading to other markets in coming months.

- Zillow Group (Z,ZG) plunged as much as 18% on Tuesday after it issued preliminary Q2 sales along with Q3 and FY18 sales forecasts all trailing Street views, prompting a downgrade of the real estate listings website to Neutral from Buy at Bank of America Merril Lynch. The company also said it was acquiring Mortgage Lenders of America for an undisclosed amount.

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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