Financial Sector Update for 07/29/2021: HOOD,CG,MA,PYPL

Financial stocks gave back a portion of their prior gains, with the NYSE Financial Index rising 1.0% in afternoon trading while the SPDR Financial Select Sector ETF (XLF) was ahead 1.3%.

The Philadelphia Housing Index also was climbing 2.8% although the SPDR Real Estate Select Sector ETF (XLRE) was slipping 0.1% shortly before Thursday's closing bell.

In company news, Robinhood Markets (HOOD) was 7.4% lower late in its first day of Nasdaq trading after the discount broker popular with retail investors Thursday priced a $1.99 billion public offering of nearly 52.4 million class A common shares at $38 each, which was the bottom of its expected $38 to $42 range. Co-founders Vladmir Tenev and Baju Bhatt, as well as chief financial officer Jason Warnick, also sold a combined 2.63 million of their Robinhood shares through the IPO.

PayPal Holdings (PYPL) slid 5.9% after the payments processor late Wednesday projected Q3 and FY21 earnings and revenue trailing Wall Street expectations, including non-GAAP net income this year of $4.70 per share on $25.75 million in revenue. The Street is expecting a $4.74 per share profit, excluding one-time items, on $25.82 billion in FY21 revenue, according to Capital IQ polling.

To the upside, the Carlyle Group (CG) rose 6.7% after the private-equity firm Thursday reported Q2 earnings of $2.55 per share, up from $0.41 per share during the same quarter and blowing past the Capital IQ consensus expecting a $0.61 a share quarterly profit. Segment revenue grew 57.8% year-over-year to $919 million, also exceeding the $666.7 million Street view.

Mastercard (MA) was 1.5% higher after the credit card issuer reported non-GAAP Q2 net income of $1.95 per share, improving on $1.36 per share adjusted profit during the same quarter in 2020, while revenue increased almost 36% over year-ago levels to $4.53 billion. Analysts, on average, had been expecting $1.75 per share and $4.37 billion, respectively.

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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