Financial Sector Update for 08/03/2020: GPN,AMZN,TD,TD.TO,FTAC,PAYA,HSBC

Financial stocks were hanging on for small gains in late trade, with the NYSE Financial Index climbing 0.2% while the SPDR Financial Select Sector ETF was ahead 0.3%.

The Philadelphia Housing Index also was posting a 1.4% gain.

In company news, TFS Financial (TFSL) slipped almost 3% despite the bank holding company Monday saying it received a notice of non-objection from the Cleveland Fed to pay up to $1.12 per share in dividends over the 12 months ending next July. The actual amounts and the time of the dividends to be paid will be determined by the TFS Financial board, the company said.

Global Payments (GPN) was 1% higher after the payments company announced a multi-year collaboration agreement with Amazon (AMZN) Web Services to provide cloud-based issuer processing services to financial institutions. The company also said Toronto-Dominion Bank (TD) has renewed its multi-year agreement with Global Payments' TSYS unit for a number of processing and support services. Financial terms of either contract were not disclosed.

Among decliners, FinTech Acquisition III (FTAC) fell just over 1% after the blank-check entity Monday said it will merge with privately-held payments processor Paya through a transaction valuing the combined companies at around $1.3 billion. CEO Jeff Hack and other Paya executives will continue in their currents roles and private-equity investors GTCR will remain Paya's largest shareholder after the deal closes and the stock begins trading under the PAYA ticker symbol.

HSBC Holdings (HSBC) dropped 4.5% after the UK-based financial services giant earlier reported a $0.10 per share profit for the first half of 2020, down from $0.42 during the same period last year, while revenue fell year-over-year to $26.75 billion from $29.37 billion. The first-half results still beat Wall Street forecasts, however, by $0.05 per share and $940 million, 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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