Financial Sector Update for 08/10/2018: FDS,COLD,SSC

Top Financial Stocks

JPM -1.10%

BAC -1.33%

WFC -0.49%

C -2.36%

USB -0.54%

Financial stocks extended their decline this afternoon, including a more than 1.5% drop for the NYSE Financial Index while shares of financial companies in the S&P 500 also were falling just over 1.1%. The Philadelphia Housing Index was dropping slightly more than 1.0%.

In economic news:

Stocks were under pressure Friday after a deep dive for the Turkish lira against other currencies sparked market contagion fears beginning in European trading and later spreading to U.S. markets. The lira overnight dropped 20% against the dollar, fueling a selloff for European equities while U.S. President Donald Trump responded by doubling tariffs on Turkish aluminum and steel to 20% and 50%, respectively, in a bid to force the release of an American pastor being held in Turkey and the weakening lira making existing tariffs less effective.

Also Friday, consumer prices rose 0.2% during June over prior-month levels, accelerating a 0.1% increase reporting in May and matching the Econoday consensus call. Prices increased 2.9% over June 2017 levels, the Bureau of Labor Statistics said, unchanged from the previous month and also matching market estimates. Excluding food and energy costs, prices paid at the retail levels rose 0.2% month over month while the annual core rate climbed to 2.4% from 2.3% in May.

Among financial stocks moving on news:

+ Huntington Bancshares ( HBAN ) was nearly 1% lower shortly before Friday's closing bell, drifting off a mid-day climb that carried the bank holding company to within 4 cents of today's break-even mark after saying it was acquiring a public finance investment bank and broker-dealer for an undisclosed amount. Privately held Hutchinson, Shockey, Erley & Co. (HSE) issues municipal securities for state and local governments as well as other public sector clients and non-profit organizations. It also manages a trading and institutional sales platform.

In other sector news:

+ Seven Stars Cloud ( SSC ) rose more than 7% on Friday after the block-chain financial technology company said it raised $12 million from Advantech Capital Investment II Ltd by issuing a convertible note to the Chinese private equity firm. Seven Stars Friday also said it has restructured its recent private placement with GT Dollar, paring its stock sale to the Singapore-based ecommerce platform by 75% to $10 million. Seven Stars plans on using the new investments to accelerate adoption of its artificial-intelligence technology into various business verticals.

+ Americold Realty Trust ( COLD ) advanced Friday, rising over 6%, after the real estate investment trust reported Q2 core funds from operations of $0.29 per share for the three months ended June 30 and topping the two-analyst consensus by $0.03 per share. Excluding one-time, its adjusted FFO was $0.27 per share, trailing the Street view by $0.01 per share. Revenue rose 4% year over year to $394.7 million, also surpassing the $392.1 million analyst mean.

- FactSet Research Systems ( FDS ) declined Friday, falling over 1%, despite a California state court jury late Thursday ruling in its favor in a lawsuit filed by Ashbury Heights Capital. The suit stems from Ashbury Heights partnering with Revere Data in 2010 and the asset manager providing Revere with a data analysis tool that tries to predict stock price movements in response to economic events and other factors. FactSet acquired Revere Data in 2013 for $15 million and Ashbury Heights argued FactSet owed it around $100 million in unpaid royalties and for the ongoing value of using its intellectual property.

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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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