Financial Sector Update for 09/05/2018: WHLR,RLJ,BRO,SUI

Top Financial Stocks

JPM -0.65%

BAC -0.11%

WFC +0.49%

C -0.15%

USB +0.20%

Financial stocks still were edging higher this afternoon, including a more than 0.1% gain for the NYSE Financial Index while shares of financial companies in the S&P 500 were also were rising slightly almost %. The Philadelphia Housing Index was more than 0.7% higher in recent trade.

In economic news:

The nation's trade deficit grew significantly in July, rising $4.4 billion to $50.1 billion from a downwardly revised $45.7 billion in June. Economists polled by Econoday, on average, had been expecting a $50.2 billion July deficit. Among individual components in the July account balance, the goods deficit jumped $4.2 billion to $73.1 billion while the surplus for services slipped slightly to $23.1 billion. Exports of capital goods slipped by $1 billion from June levels to $46.3 billion.

Among financial stocks moving on news:

(+) The Wheeler Real Estate Investment Trust ( WHLR ) was almost 5% higher in late Wednesday trading, steadily building its advance throughout the session after activist shareholders the Stilwell Group sent a fifth letter to other investors seeking support for its three-nominee director slate and the hedge fund's bid to overhaul company management. Stilwell is Wheeler's largest institutional investor with 919,540 shares, or 9.8% of its outstanding stock, and said in Wednesday's message that its board candidates would "exhibit better judgment, responsibility and decision-making" than the incumbent directors. Wheeler has urged shareholders to oppose Stilwell's efforts.

In other sector news:

(+) RLJ Lodging Trust ( RLJ ) advanced over 1% on Wednesday after the real estate investment trust said it has sold the 362-room Vinoy Renaissance Resort & Golf Club in St. Petersburg, Fla., to an unidentified buyer for $188.5 million. Together with the recent $12.9 million sale of the 152-room DoubleTree Columbia Hotel in Maryland, RLJ Lodging said the two dispositions will trim its forecast for adjusted earnings before interest, taxes, depreciation and amortization for the current quarter ending Sept. 30 by about $1 million and its Q4 adjusted EBITDA by around $4 million.

(+) Brown & Brown ( BRO ) was fractionally higher, rising less than 1%, after Wednesday saying its subsidiary in Kentucky has acquired nearly all of the assets of F&I Resources, which specializes in finance and insurance performance management for auto dealers in the northeastern U.S. and the mid-Atlantic states. Financial terms of the deal were not disclosed.

(-) Sun Communities ( SUI ) retreated Wednesday, falling over 2%, after the real estate investment trust said it priced an upsized offering of 4.4 million shares of its common stock, up from 4 million shares in its original plans. The company did not disclose the share price for the offering and also did not say how much the deal generated. The company expects to use net proceeds to repay outstanding debt owed under its revolving and senior term loan facilities as well as funding potential acquisitions in the future.

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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