Good morning traders and investors of the r/stocks sub! Welcome to the new trading day and a fresh start! Here are your pre-market stock movers & news on this Wednesday, March the 15th, 2023-
Dow futures fall 500 points as Credit Suisse slide adds to financial sector woes: Live updates
Stock futures fell on Wednesday as pressure on the financial sector increased with shares of Credit Suisse, a Swiss Bank that has large U.S. and global operations, tumbling more than 20%.
Futures tied to the Dow Jones Industrial Average fell 567 points, or 1.8%, while Nasdaq-100 futures lost 1.6%. The 1.7% slide in S&P 500 futures put the broad index’s 2.1% year-to-date gain at risk.
In recent days, a crisis in the financial sector has centered around regional banks as Silicon Valley Bank and Signature Bank collapsed, both casualties of poor management in the face of eight interest rate hikes by the Federal Reserve in the last 12 months. Wednesday morning attention turned to the big banks with shares of Credit Suisse hitting an all-time low.
Saudi National Bank, Credit Suisse’s largest investor, said Wednesday it could not provide any more funding, according to a Reuters report. This comes after the Swiss lender said earlier this week it had found “certain material weaknesses in our internal control over financial reporting” for the years 2021 and 2022.
U.S.-traded shares of Credit Suisse dropped more than 25% in the premarket.
As Credit Suisse dragged down the European Bank sector, U.S. big bank shares declined in sympathy. Citigroup and Wells Fargo shed 4% each, while Goldman Sachs and Bank of America fell around 3% apiece. The Financial Select Sector SPDR Fund (XLF) lost 2.3% in premarket trading, giving up its 2% pop on Tuesday.
Regional banks, which rebounded Tuesday to lift sentiment for the broader market, fell back into the red again. The SPDR S&P Regional Banking ETF (KRE) was down 3% in the premarket, led by losses in Old National Bancorp, Zions Bancorp and Fifth Third Bancorp. To be sure, shares of First Republic Bank were clinging to gains.
Peter Boockvar of Bleakley Financial Group said pressure on the financial sector was growing broadly because the bank failures have changed the mindset of the industry.
“What this is telling us is there’s the potential for just a large credit extension contraction that banks are going to embark on [to] focus more on firming up balance sheets and rather than focus on lending,” said Boockvar to CNBC’s “Squawk Box.”
“It’s a balance sheet rethink that the market’s have” Boockvar added, citing that many banks may have bought longer maturity bonds that have reduced in value since the Fed started raising rates. “Also you have to wonder with a lot of these banks if they’re going to have to start going out and raising equity.”
Elsewhere on Wednesday, investors will gain more insight into the state of the economy through retail sales and producer price index data due out before the bell.
STOCK FUTURES CURRENTLY:
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YESTERDAY'S MARKET MAP:
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TODAY'S MARKET MAP:
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YESTERDAY'S S&P SECTORS:
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TODAY'S S&P SECTORS:
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TODAY'S ECONOMIC CALENDAR:
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THIS WEEK'S ECONOMIC CALENDAR:
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THIS WEEK'S UPCOMING IPO'S:
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THIS WEEK'S EARNINGS CALENDAR:
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THIS MORNING'S PRE-MARKET EARNINGS CALENDAR:
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EARNINGS RELEASES BEFORE THE OPEN TODAY:
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EARNINGS RELEASES AFTER THE CLOSE TODAY:
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YESTERDAY'S ANALYST UPGRADES/DOWNGRADES:
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YESTERDAY'S INSIDER TRADING FILINGS:
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TODAY'S DIVIDEND CALENDAR:
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THIS MORNING'S STOCK NEWS MOVERS:
(source: cnbc.com)
Credit Suisse — Shares of Credit Suisse were down 21.5% after the firm’s biggest backer, Saudi National Bank, said it won’t provide it with further financial help. Credit Suisse and several other European banks, including Societe Generale, Italy’s Monte dei Paschi and UniCredit, were halted from trading as prices plummeted.
STOCK SYMBOL: CS
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Bank of America, Morgan Stanley, Wells Fargo — Shares of larger financials were in lower early Wednesday as the Credit Suisse tumble sent ripples across the global banking sector. Bank of America lost 2.9%, Morgan Stanley dropped 3.2% and Wells Fargo declined by nearly 4.2%.
STOCK SYMBOL: BAC
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Lennar — Shares of the homebuilder rose more than 1% in premarket trading after Lennar beat estimates on the top and bottom lines for its fiscal first quarter. Lennar reported $2.06 in earnings per share on $6.49 billion of revenue. Analysts surveyed by Refinitiv expected $1.55 in earnings per share on $5.93 billion of revenue. Home deliveries increase 9% year over year, but gross margin and new orders decreased.
STOCK SYMBOL: LEN
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PacWest Bancorp, Comerica, KeyCorp — Several regional banks led Wednesday’s fall after rallying on Tuesday. PacWest and Comerica lost 7.7% and 3.4%, respectively. KeyCorp’s stock price dropped 1.4%, Regions Financial was down 4.2% and Zions Bancorp lost 5.5%. Shares of San Francisco-based First Republic bucked the trend, gaining 3.8%.
STOCK SYMBOL: PACW
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Royal Caribbean — Shares of the cruise line were down 2.8%. The company recently refunded guests after mistakenly offering a non-existent ‘Premier Pass’ on its website. The company also announced it would be expanding its sales team. Rival cruise operators were also down.
STOCK SYMBOL: RCL
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FULL DISCLOSURE:
/u/bigbear0083 has no positions in any stocks mentioned. Reddit, moderators, and the author do not advise making investment decisions based on discussion in these posts. Analysis is not subject to validation and users take action at their own risk.
DISCUSS!
What's on everyone's radar for today's trading day ahead here at r/stocks?
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