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Financial Sector Update for 12/29/2016: PHH,NRZ,EMG,GRF

Top Financial Stocks

JPM -1.60%

BAC -2.35%

WFC -1.43%

C -2.12%

USB -1.40%

Financial stocks were sharply lower Thursday, with the NYSE Financial Sector Index sinking 0.4% while financial companies in the S&P 500 Index were declining nearly 1.2%.

In company news, PHH Corp ( PHH ) was surging Thursday, with shares of the non-bank mortgage originator again nearing their intra-day highs after the company said late Wednesday it sold a $72 billion portfolio of seasoned agency and private-label mortgage servicing rights to New Residential Investment Corp ( NRZ ) for $612 million.

New Residential Mortgage also is buying around $300 million of servicer advances from PHH Mortgage, which will subservice the loans underlying the mortgage servicing rights under a concurrent agreement with the buyers. The deal is expected to close by mid-2017, pending shareholder and other regulatory approvals and certain customary closing conditions.

PHH shares were up more than 7% at $15.31 each, recouping a large share of their 9.5% gain soon after the opening bell. NRZ shares also were narrowly higher this afternoon, rising about 0.3% to $15.62 apiece, staying 10 cents of their intra-day high.

In other sector news,

(+) EMG, (+3.6%) U.S. Securities and Exchange Commission concludes a nearly five-year probe into the company's premium finance business and related financial reporting without recommending any enforcement action.

(-) CMA, (-1.6%) Price target rises $3 to $71 a share at Piper Jaffray, which also reiterated its Neutral rating for the stock.

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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