Sector update: financial stocks back on positive ground at the end of the session


Financial stocks edged up, with the NYSE financial index rising 0.2% this afternoon, reversing the morning’s decline, while the SPDR Financial Select Sector ETF (XLF) was ahead 0.1%.

The Philadelphia housing index also climbed 1.4% and the SPDR Real Estate Select Sector ETF (XLRE) rose 0.5%.

In company news, Allstate (ALL) was up slightly this afternoon, overcoming an almost 1% drop earlier on Thursday following the insurer saying it expects a catastrophic loss of $ 498 million after tax resulting from Hurricane Ida and Category 4 storm that made landfall in Louisiana. on August 29 and its remnants dropped record precipitation in 19 states before moving again offshore to New England on September 2.

Great Western Bancorp (GWB) rose more than 13% after accepting a $ 2 billion share buyback offer from First Interstate BancSystem (FIBK), which will issue 0.8425 shares for every Great Western share, indicating a price of $ 35.65 per share for the target company, or 24.7% above Wednesday’s closing price. First Interstate shares were down 6.6% this afternoon.

Offerpad (OPAD) climbed nearly 50% after the real estate developer finalized a 24-month, $ 300 million loan deal with JPMorgan (JPM), Wells Fargo (WFC) and other lenders to fund its purchase and its renovation of single-family properties. The Sept. 10 loan program also includes a $ 100 million accordion feature and up to $ 50 million in mezzanine financing, according to a regulatory filing Wednesday night.

Among the declines, Ashford Hospitality Trust (AHT) fell 5.1% after the real estate investment trust said Wednesday evening it generated $ 94.16 in revenue per available room in August, down 11% from the previous month, 27% below last year’s levels. Hotel net income also fell to $ 900,000 last month, from $ 7.9 million in July and $ 15 million in August 2019.

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