Top Financial Stocks
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.
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