Financial Sector Update for 07/17/2020: ETFC,MS,RF,OCN,GOOD
Financial stocks turned mixed again in late-afternoon trading, with the NYSE Financial Index climbing less than 0.1% while the SPDR Financial Select Sector ETF was falling 0.6%.
The Philadelphia Housing Index was ahead 1.0%.
In company news, E*TRADE Financial (ETFC) was edging lower after the company said Morgan Stanley's proposed acquisition of the discount broker was approved by shareholders, with a preliminary tally showing more than 99% of shares cast at Friday special meeting voting for the all-stock buyout offer. The companies are expecting the $13 billion deal to close before the end of the year. Morgan Stanley shares also were narrowly lower shortly before Friday's closing bell.
Regions Financial (RF) declined 4.4% after the bank holding company earlier Friday reported a surprise Q2 net loss of $0.25 per share, reversing a $0.37 per share profit during the year-ago period and missing the Capital IQ consensus expecting Q2 net income of $0.07 per share for the three months ended June 30.
Among gainers, Ocwen Financial (OCN) jumped more than 45% after the mortgage servicing company said it expects to report an $18 million pre-tax adjusted profit for its Q2 ended June 30, reversing a $27 million non-GAAP, pre-tax net loss during the same quarter last year. Ocwen also had around 112,000 forbearance plans in place through July 13, down from a peak of 132,000 at the end of June, it said.
Gladstone Commercial Corp (GOOD) was 2% higher after late Thursday saying it collected 99% of the cash base rent due in July, up from 98% in June, and 97% and 98% during May and April, respectively. The real estate investment trust, which had over $35% in liquidity on hand through July 16, also said the 1% to 2% of past-due rent still outstanding started to be repaid this month under deferred agreements with the tenants and will be fully repaid by next March.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.