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Sector Update: Financial Stocks Higher But Lagging Broader Markets; Summit Hotel Properties Gaining After $53 Mln Hotel Purchase

Top Financial Stocks

JPM +0.15%

BAC -0.13%

WFC +0.81%

C -0.32%

USB +0.14%

Financial stocks were moderately higher, with the NYSE Financial Sector Index climbing about 0.4% and the S&P Financial 100 Index advancing about 0.4%.

In company news, Summit Hotel Properties ( INN ) was higher Tuesday after the real estate investment trust after late Monday announced the $53 million purchase of the Hampton Inn & Suites in downtown Austin, Texas.

According to the company, INN plans to spend around $2.4 million in capital improvements over the next year on the 12-year-old hotel. It anticipates a post-renovation 12-month capitalization rate in a range of 8% to 8.5%, generating around $1.4 million in adjusted earnings before interest, taxes, depreciation and amortization through the rest of the year.

INN also entered into a management agreement for the facility with Interstate Hotels & Resorts.

Shares were ahead about 1.7% at $10.63 each, just 3 cents under its session high and bouncing back from an early slide to $10.39 a share. The stock has traded within a 52-week range of $8.50 to $11.09 a share, rising almost 14% over the past 12 months prior to Tuesday's trading.

In other sector news,

(+) GRT, (+29.8%) Agrees to $4.3 bln buyout offer from Washington Prime Group ( WPG ), which will exchange $10.40 in cash and 0.1989 of its stock for each GRT share. Deal also includes GRT selling two malls to Simon Property Group ( SPG ) for $1.09 bln.

(-) MS, (-0.3%) Morgan Stanley Infrastructure unit buys 6.5% interest in natural gas gathering facility from Magnum Hunter Resources Group ( MHR ) for $65 mln. Also buys 41% stake in the facility from ArcLight Capital Partners for an unspecified amount.

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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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