Good Monday morning traders and investors of the r/stocks sub! Welcome to the new trading week and a fresh start! Here are your pre-market stock movers & news on this Monday, March 13th, 2023-
S&P 500 futures give up earlier gains as investors weigh government’s backstop of SVB: Live updates
Futures tied to the S&P 500 traded slightly up Monday, erasing earlier gains as traders assessed a plan to backstop all the depositors in failed Silicon Valley Bank and make additional funding available for other banks.
Futures tied to the broad index add 0.1%, while Nasdaq-100 futures advanced 0.8%. Futures tied to the Dow Jones Industrial Average were down 47 points, or 0.2%
Financial stocks weighed on the broader market as last week’s slide continued. Bank stocks were under pressure, with JPMorgan Chase and Citigroup falling. Regional banks fell even more, led by a 60% drop in First Republic.
All Silicon Valley Bank depositors will have access to their money starting Monday, according to a joint statement from the Treasury Department, Federal Reserve and the Federal Deposit Insurance Corporation.
“Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” the joint statement said.
“We went into the weekend as just a very binary event. Either 100% of the uninsured depositors were going to be backstopped, or not,” Peter Boockvar, chief investment officer at Bleakley Financial Group, said Sunday during a CNBC special. “It doesn’t necessarily answer the problem of what happens from here in terms of the economic impact [from] banks that are going to have to raise deposit rates across the board.”
“Going forward, I’m more worried about bank profitability than bank balance sheets,” he added.
The Federal Reserve also said it is creating a new Bank Term Funding Program aimed at safeguarding deposits. The facility will offer loans of up to one year to banks, saving associations, credit unions and other institutions.
Elsewhere, investors are watching various economic reports this week. Tuesday’s consumer price index report is the last major inflation data release ahead of the Fed’s next meeting, ending March 22. February retail sales and the producer price index are also on deck.
“For the week ahead, it’s going to be about how fear and economics play out,” said Amit Sinha, head of multi-asset design at Voya Investment Management. “If the market feels that SVB is an isolated event, then the fear and contagion driven selling may abate. And if that happens then it’s all back to the Fed and inflation.”
STOCK FUTURES CURRENTLY:
(CLICK HERE FOR STOCK FUTURES CHARTS!)
LAST WEEK'S MARKET MAP:
(CLICK HERE FOR LAST WEEK'S MARKET MAP!)
TODAY'S MARKET MAP:
(CLICK HERE FOR TODAY'S MARKET MAP!)
LAST WEEK'S S&P SECTORS:
(CLICK HERE FOR LAST WEEK'S S&P SECTORS CHART!)
TODAY'S S&P SECTORS:
(CLICK HERE FOR TODAY'S S&P SECTORS CHART!)
TODAY'S ECONOMIC CALENDAR:
(CLICK HERE FOR TODAY'S ECONOMIC CALENDAR!)
THIS WEEK'S ECONOMIC CALENDAR:
(CLICK HERE FOR THIS WEEK'S ECONOMIC CALENDAR!)
THIS WEEK'S UPCOMING IPO'S:
(CLICK HERE FOR THIS WEEK'S UPCOMING IPO'S!)
THIS WEEK'S EARNINGS CALENDAR:
(CLICK HERE FOR THIS WEEK'S EARNINGS CALENDAR!)
THIS MORNING'S PRE-MARKET EARNINGS CALENDAR:
(CLICK HERE FOR THIS MORNING'S EARNINGS CALENDAR!)
EARNINGS RELEASES BEFORE THE OPEN TODAY:
(CLICK HERE FOR THIS MORNING'S EARNINGS RELEASES!)
EARNINGS RELEASES AFTER THE CLOSE TODAY:
(CLICK HERE FOR THIS AFTERNOON'S EARNINGS RELEASES!)
FRIDAY'S ANALYST UPGRADES/DOWNGRADES:
(CLICK HERE FOR FRIDAY'S ANALYST UPGRADES/DOWNGRADES LINK #1!)
(CLICK HERE FOR FRIDAY'S ANALYST UPGRADES/DOWNGRADES LINK #2!)
FRIDAY'S INSIDER TRADING FILINGS:
(CLICK HERE FOR FRIDAY'S INSIDER TRADING FILINGS LINK #1!)
(CLICK HERE FOR FRIDAY'S INSIDER TRADING FILINGS LINK #2!)
TODAY'S DIVIDEND CALENDAR:
(CLICK HERE FOR TODAY'S DIVIDEND CALENDAR LINK #1!)
(CLICK HERE FOR TODAY'S DIVIDEND CALENDAR LINK #2!)
THIS MORNING'S STOCK NEWS MOVERS:
(source: cnbc.com)
First Republic — Shares of First Republic cratered more than 64% before the bell, building on last week’s losses. Shares led a decline in bank stocks despite plans from the government to backstop depositors of Silicon Valley Bank and Signature Bank.
STOCK SYMBOL: FRC
(CLICK HERE FOR LIVE STOCK QUOTE!)
Seagen — Shares soared more than 18% in early market trading on news it will be acquired by Pfizer in a deal worth roughly $43 billion, which will boost Pfizer’s cancer treatment portfolio as it endures a decline in Covid-19 product sales. Pfizer offered $229 in cash per share of Seagen, a 32.7% upside to Friday’s closing price.
STOCK SYMBOL: SGEN
(CLICK HERE FOR LIVE STOCK QUOTE!)
Illumina — Shares of the biotech company rose 8.2% after The Wall Street Journal reported that billionaire activist Carl Icahn is preparing a proxy fight at Illumina. Icahn is arguing the company cost its shareholders about $50 billion after pushing through a risky acquisition despite facing opposition from regulators, the Journal said.
STOCK SYMBOL: ILMN
(CLICK HERE FOR LIVE STOCK QUOTE!)
PacWest Bancorp, Western Alliance Bancorp — Regional lenders PacWest Bancorp’s shares fell by more than 40% while Western Alliance’s stock fell by more than 51%, with both banks stinging from the closure of Silicon Valley Bank and Signature Bank. In an attempt to calm investors, both banks said on Friday that their liquidity and deposits remained strong.
STOCK SYMBOL: WAL
(CLICK HERE FOR LIVE STOCK QUOTE!)
Bank of America, JP Morgan, Citigroup — Shares of major banks saw significant losses in early market trading, after the closure of two major banks has spread fear among investors and pushed regulators to further clamp down on risks associated with the bank closures. Bank of America lost 4.2%, JP Morgan shed about 1.4%, and Citi was down 2.25%.
STOCK SYMBOL: BAC
(CLICK HERE FOR LIVE STOCK QUOTE!)
Charles Schwab — Shares declined by more than 6.6% before the bell. Citi upgraded the stock to buy from neutral, however, saying the company’s 23% decline over the last two trading days gives it a “compelling” risk-reward ratio. Citi expects near-term revenue and earnings headwinds from rising funding costs and continued client cash sorting, which it believes are already reflected in the current stock price.
STOCK SYMBOL: SCHW
(CLICK HERE FOR LIVE STOCK QUOTE!)
PNC — Shares lost nearly 5.2% early Monday morning after the bank decided against bidding on Silicon Valley Bank as regulators struggle to find buyers for the failed bank.
STOCK SYMBOL: PNC
(CLICK HERE FOR LIVE STOCK QUOTE!)
Roku — Roku’s shares fell more than 2% before the bell. The streaming and media company said in a Friday SEC filing that around $487 million, or 26%, of its cash reserves are stuck at Silicon Valley Bank.
STOCK SYMBOL: ROKU
(CLICK HERE FOR LIVE STOCK QUOTE!)
Petco Health and Wellness — Shares slipped less than 1% after the company was downgraded by Citi to neutral from buy. The Wall Street firm cited continued weakness in discretionary spending and the potential for consumers to trade down to cheaper offerings among the reasons for the call.
STOCK SYMBOL: WOOF
(CLICK HERE FOR LIVE STOCK QUOTE!)
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?
Leave a Reply