Financial Sector Update for 04/02/2020: RWT,CIT,BRO,LAMR

Top Financial Stocks

JPM +2.99%

BAC +2.28%

WFC +1.15%

C +0.10%

USB +1.41%

Financial stocks eased somewhat from their mid-day highs, with the NYSE Financial Index rising 0.6% this afternoon while the SPDR Financial Select Sector ETF still was posting a 2.0% advance. The Philadelphia Housing Index was sinking 2.5%.

Among financial stocks moving on news:

(-) Redwood Trust (RWT) dropped over 29% on Thursday after saying its GAAP net value at the end of March likely fell between 52% to 56% compared with the end of 2019 to between $7.03 to $7.67 per share because of market volatility during the COVID-19 pandemic. The real estate investment trust also said it sold about $570 million of securities between March 1 and March 27, generating $220 million in cash proceeds, and was expecting to close on a separate deal for $1.9 billion of its residential mortgage loans by May 21.

In other sector news:

(+) Brown & Brown (BRO) rose 2% after the insurance company said it acquired substantially all of North Carolina-based Sterling Group through its dealer services subsidiary. Financial terms were not disclosed.

(-) CIT Group (CIT) turned 2% lower this afternoon, reversing an earlier gain that followed the commercial lender Thursday saying it provided the financing for Aria Designs that the North Carolina-based furniture-maker used to buy more than 5 million N95 surgical masks it is giving to frontline medical personnel throughout the state responding to the COVID-19 pandemic. The first masks are expected to arrive in the coming days, CIT said.

(-) Lamar Advertising (LAMR) fell almost 12% after the real estate investment trust Thursday slashed its FY20 capital budget, saying it expects to spend around $58 million this year compared with its prior $130 million forecast. The outdoor billboard company also is pausing its acquisition activity and started a hiring freeze as advertising suffers from shelter-in-place orders in most states. Lamar also said it was reviewing its dividend payments during the COVID-19 pandemic.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.