Hyatt Gains, Robinhood Hits Record, US Banks Rise

On this edition of Stock Movers: 

- Hyatt Hotels Corp (H) shares gain after the hotel operator said it will sell the entire Playa Hotels & Resorts real estate portfolio for $2 billion to Tortuga Resorts, a joint venture between KSL Capital Partners and Rodina. Deal includes 15 all-inclusive resorts across Mexico, the Dominican Republic and Jamaica. Hyatt will retain long-term management rights for 13 of the properties and hold $200m in preferred equity.

- Robinhood Markets Inc (HOOD) shares hit a record high as they are joining the growing push to trade US equities on the blockchain, making tokenized US securities available to 150,000 customers in 30 countries, 24 hours a day, five days a week. The company will own the shares backing the tokens, a spokesperson said, and while token holders will have most of the benefits of the underlying security, including dividends, voting rights won’t be initially supported. Bloomberg News previously reported that the product was in development.

- Big US banks such as Goldman Sachs Group (GS), Wells Fargo (WFC), and Bank of America (BAC) shares rose after the industry’s biggest names comfortably cleared the Federal Reserve’s annual stress test late Friday, setting the stage for lenders to boost buybacks and dividends for shareholders.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, The.

Speaker 2 (00:08):
Stock Movers podcast, your roundup of companies making moves in
the stock market, harnessing the power of Bloomberg Data.

Speaker 1 (00:18):
I'm Carol Masser along with Matthew Miller in for Tim Stanebeck.
Let's take a look at some stocks on the move
today with us as Bloomberg News Equities reporter Alexandra Semenova.
And when we take a look at some stocks that
are moving today, you got to talk about, well, where
do you want to start.

Speaker 3 (00:35):
So a little less exciting than Brad Pitt is Hyatt
Hotel's real estate portfolio. They're selling sorry, Hyatt fifteen resorts
for two billion dollars. This is part of an effort
to cut back on its real estate holdings and to
add to its all inclusive offerings. They've been trying to
do that for years now. Tortuga Resorts that is the
joint venture of private investment firms KSL Capital Partners in Redina.

(00:57):
They'll be buying those properties and the transaction is expected
to be completed at the end of this year. Hyatt
is also eligible to receive an additional one hundred and
forty three million dollars if certain operating thresholds are met
in this deal, it entered into a fifty year agreement
for contracts on thirteen of those fifteen hotels, meaning that
the company will earn fees from those properties into its

(01:18):
loyalty programs. Now, broadly, the deal is expected to reduce
volatility in its portfolio. Jeffries called it a strategic move,
and Morgan Stanley analysts are saying that this removes uncertainty
over asset dispositions in this current macro environment. The stock
is about flat right now, is up as much as
four percent earlier in the day.

Speaker 1 (01:36):
Yeah, bit of a swing there right in terms of
the trade. You want to go to the.

Speaker 4 (01:39):
Next robin hood. The stock is up and Vlad has
been saying he wants to tokenize equities, and now I
guess they're doing it.

Speaker 3 (01:47):
Yeah, that's getting a really positive reaction today. Up about
twelve percent right now. And Matt, actually, the stock is
up one hundred and forty eight percent this year. Didn't
realize how well it was doing. It is joining the
push to trade US equities on the blockchain. It is
tokenizing US securities to one hundred and fifty thousand customers
in thirty countries twenty four hours a day, five days

(02:07):
a week. Tokenized securities are blockchain trade at assets whose
values mirror the underlying equity. My favorite part of this
whole announcement is that lat ten If actually unveiled this
in conference at the chateau where Alfred Hitchhoks to catch
a thief was. He went on to say that crypto
is more than a speculative asset very poetic. Exchange traded

(02:29):
shares are available to investers in most parts of Europe
right now, but advocates for these tokenized versions say that
they offer benefits of equities, including dividends and stock splits.

Speaker 1 (02:39):
It does look like lat ten I is going to
be on at three three ten pm I think today.

Speaker 4 (02:44):
Okay, so he's just about to come television.

Speaker 1 (02:46):
Yeah, but don't close, but don't go anywhere.

Speaker 4 (02:49):
Don't go anywhere. Still listen to us multiple screens, Goldman
Sachs And to me, the bank stories were huge today,
So not great, did you have? I mean, the fact
that they passed the stress test is not hughes noah back.
Obviously they're going to and I feel like they might
want to grade on the curve and just fail at
least one once a year. But that wouldn't be great
for the economy, and.

Speaker 1 (03:09):
You don't want to be that one bang.

Speaker 4 (03:11):
But I g also in the news for firing like
two hundred and thirty managers. So there's a lot of
bank news and a lot of movements.

Speaker 3 (03:18):
Yeah, a lot going on. Shares the banks across the
border gaining after comfortably clearing the FED stress test late Friday.
That sent set the stage for lenders to boost buybacks
and dividends to shareholders. The heavyweights today all moving higher, Goldman, Sacks,
Wells Fargo, Bank of America, JP, Morgan and City and
also guys. The KBW Bank index is rising four and

(03:38):
eighth straight. Data shows what an incredible run this sector
has had. And of course we have earning season coming up,
and they're kind of the informal curtain raiser for what's ahead,
so everyone will be tuning into what banks are saying.
Obviously looking at remarks from Mike Mayo, he says that
the FED stress test is a clear demonstration that regulation
is becoming less onerous, less volatile for the sector.

Speaker 1 (04:00):
I mean, look at the KBW Bank indes dex It's
up about nine and a half percent so far this year,
compared with about a five percent game the S and
P five.

Speaker 4 (04:07):
Labors Financials as a group this year. Yeah, I think
they're the third biggest game taste. I have Industrials as
the biggest gainer year to date, right, and then comm
services which is the hyperscalers, and then financials in third place.

Speaker 1 (04:22):
Yeah, they've really had some app performance there.

Speaker 3 (04:24):
Most STROTTERG of Side spoken to say that that is
set to continue the second half of the year.

Speaker 2 (04:29):
The Stock Movers podcast from Bloomberg Radio. Check back with
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