Home » Business » Anue tycoon-US stocks report: First Republic Bank tumbles over 32%, Dow ends over 380 points higher but slips 0.2% during week

Anue tycoon-US stocks report: First Republic Bank tumbles over 32%, Dow ends over 380 points higher but slips 0.2% during week

Investors worry that the turmoil in the banking industry will plunge the global economy into recession, the panic index VIX soared, and U.S. bond yields fell.dollar indexWeakness, the selling pressure of US stocks reappeared on Friday (17th).

Regional bank stocks were rumbling, and the SPDR S&P Regional Bank ETF (KRE) fell 5.99%. First Republic’s stock price plummeted more than 32% after it considered a stock offering to raise funds or sell. ADRs at Credit Suisse fell more than 6% after reports that at least four banks had restricted trading with Credit Suisse and its securities arm. but,bitcoinSoaring more than 7%, pushing some encryption concept stocks to buck the trend and rise.

The four major indexes closed in ink,Dow Jones IndexSliding more than 380 points, the S&P 500 index fell by more than 1%,Nasdaq Composite IndexIt fell nearly 0.74 percent, snapping a four-day winning streak,Philadelphia SemiconductorThe index closed down nearly 0.5 percent.

Still, Friday’s sell-off in U.S. stocks wasn’t enough to stop the S&P andThat fingerThe weekly line closed in red, with the two major indexes rising 1.4% and 4.4% for the week,That fingerThe weekly gain was the best since the week of March 20.Dow JonesIt was down 0.2% for the week.

On the political and economic front, Federal Reserve data showed that lending through the Fed’s discount window increased by $148.3 billion to a record $152.85 billion in the week ended March 15, compared with $4.58 billion the previous week, highlighting the U.S. The banking system remains fragile after three successive bank failures and is dealing with issues such as deposit withdrawals from depositors.

U.S. President Joe Biden on Friday called on Congress to tighten oversight and impose tougher penalties on top bank officials who fail due to mismanagement.

The U.S. Federal Deposit Insurance Corporation (FDIC) has asked banks interested in buying bankrupt banks Silicon Valley Bank and Signature Bank to bid by March 17, foreign media quoted sources as saying, and the U.S. government may not agree to a deal to facilitate the sale. Partial loss is excluded.

Former U.S. Treasury Secretary Lawrence Summers urged the Federal Reserve to continue raising interest rates next week and not to tighten policy due to undue concern over recent banking turmoil. According to the CME’s FedWatch tool, traders expect the possibility of the Fed raising interest rates by 1 yard on March 22 to about 60%, and the probability of keeping interest rates on hold is as high as 40%.

The International Criminal Court (ICC) issued an arrest warrant against Russian President Vladimir Putin, accusing Putin of being responsible for war crimes committed by Russian troops in Ukraine.

The performance of the four major US stock indexes on Friday (17th):
The 11 major sectors of the S & P were wiped out, led by the financial, real estate and industrial sectors. (Image: finviz)
Focus stocks

The five kings of science and technology have their ups and downs. Meta (META-US) down 4.55%; Apple (AAPL-US) fell 0.55%; Alphabet (GOOGL-US) rose 1.30%; Microsoft (MSFT-US) rose 1.17%; Amazon (AMZN-US) fell 1.09%.

Dow JonesMore than half of constituent stocks ended lower. traveller (TRV-US) down 4.17%; JPMorgan Chase (JPM-US) down 3.78%; Goldman Sachs (GS-US) down 3.67%; Merck (MRK-US) down 3.02%; Walmart (WMT-US) up 0.81%.

fee halfComponent stocks were mixed. NVIDIA (NVDA-US) rose 0.72%; AMD (AMD-US) rose 1.28%; Applied Materials (AMAT-US) down 0.19%; Texas Instruments (TXN-US) down 0.80%; Qualcomm (QCOM-US) rose 0.18%; Micron (MU-US) rose 0.16%.

Taiwan’s ADR is dominated by TSMC. TSMC ADR (TSM-US) rose 0.19%; ASE ADR (ASX-US) fell 2.74%; UMC ADR (UMC-US) down 0.81%; Chunghwa Telecom ADR (CHT US) fell 0.75%.

Corporate News

The capital injection of 11 large U.S. banks was short-lived, and First Republic Bank (FRC-US) was hit hard by short sellers, closing down 32.88% to $23.03 per share, and fell as much as 72% this week.

Investment bank Wedbush lowered its price target on First Republic to $5 a share (Image: AFP)
Investment bank Wedbush lowered its price target on First Republic to $5 a share (Image: AFP)

First Republic Bank is considering a new stock offering to raise funds, and Wedbush analysts also said that a cheap sale of First Republic Bank could result in little residual value for common stock holders, downgrading the stock to outperform “Neutral”, the target price dropped sharply to $5 per share from the previous $140 per share.

Credit Suisse ADR (CS-US) tumbled 6.94% to $2.01 per share.

The Financial Times reported after the close on Friday that banking giant UBS was in discussions to buy all or part of Credit Suisse’s business, with the boards of Switzerland’s two largest lenders meeting separately over the weekend. It has previously been rumored that the two banks are opposed to the idea of ​​a forced merger.

FedEx (FDX-US) closed up 7.97% at $220.31 per share. FedEx raised its profit forecast for fiscal 2023 on Thursday, citing progress on a plan to cut costs by $3.7 billion this year.

Meta (META-US) closed down 4.55% to $195.61 per share, and rose 0.20% after hours. Former U.S. President Donald Trump’s Facebook page was unblocked on Friday, but it was not clear whether Trump would use his Facebook account to post. A Trump campaign spokesman toldmedia in January that Facebook would be an important tool for his 2024 campaign to reach voters.

Economic data
  • U.S. industrial output in February was 0% month-on-month, expected 0.2%, and the previous value was 0%
  • U.S. manufacturing output in February was 0.1% month-on-month, expected to be -0.3%, and the previous value was 1%.
Wall Street Analysis

“Given the surge in Fed borrowing, it’s not hard to understand why investors remain so anxious about the banking sector,” said Matt Maley, chief market strategist at Miller Tabak + Co.

Janney investment strategist Mark Luschini mentioned: “There are still many problems, and the enthusiasm of the bulls does not seem to be able to sustain beyond the 24-hour period.”

UBS analysts say bank stocks will only really stabilize once the market appears to have a long-term solution to First Republic’s woes.

“Given that there is no consensus on how the stress in the banking system will affect the economy, with stocks moving up and down throughout the week, and with wide range, investors are trying to understand whether the problems in the banking sector will accelerate the slowdown,” Wells Fargo analysts said. economy.”

The numbers are all updated before the deadline, please refer to the actual quotation


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