STOCK MARKET NEWS: Stocks rise, First Republic and Credit Suisse get help, FedEx raises forecast

First Republic Bank branch in Midtown Manhattan in New York City, New York, Mar. 13, 2023. (Reuters/Mike Segar)

First Republic Bank has received $30 billion in deposits from several big banks, the banks said in a statement on Thursday, as part of a rescue package for the lender.

JPMorgan Chase & Co, Citigroup Inc, Bank of America Corp, Wells Fargo & Co, Goldman Sachs Group Inc, Morgan Stanley and others are involved in the rescue, according to the statement.

MARKETS

First Republic gets $30 billion rescue from biggest US banks

Eleven banks including JPMorgan and Citigroup deposited $30 billion in First Republic Bank on Thursday afternoon amid fears of a financial-sector crisis.

A round of financing on Sunday raised through JPMorgan Chase & Co, gave First Republic access to a total of $70 billion in funds, but failed to calm investors as worries of a contagion deepened in the wake of two large-scale collapses in the banking industry.

The rescue effort was initiated by banks but had strong backing and encouragement from the government, according to a person with knowledge of the matter.

United States Steel is guiding to first quarter 2023 adjusted EBITDA of approximately $375 million. First quarter 2023 adjusted net earnings per diluted share is expected to be in the range of $0.58 to $0.63.

“Momentum continues to build in the North American flat-rolled market,” commented U. S. Steel President and Chief Executive Officer David B. Burritt. “Strong safety and operating performance, improving order entry and our continued focus on winning share in strategic markets are resulting in better than expected first quarter guidance. We expect these trends to continue into the second quarter given extending lead times and the flow-through of higher selling prices.”

The company expects to complete approximately $75 million of repurchases of common stock in the first quarter under its existing $500 million stock buyback authorization.

Williams-Sonoma Inc. on Thursday reported fiscal fourth-quarter net income of $355 million.

The San Francisco-based company said it had net income of $5.28 per share. Earnings, adjusted for asset impairment costs, were $5.50 per share.

The results surpassed Wall Street expectations . The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $5.41 per share.

The seller of cookware and home furnishings posted revenue of $2.45 billion in the period, which did not meet Street forecasts. Eight analysts surveyed by Zacks expected $2.59 billion.

For the year, the company reported profit of $1.13 billion, or $16.32 per share. Revenue was reported as $8.67 billion.

AFedEx last-mile delivery van is seen near a FedEx Ground distribution center in Carson, Calif., Sept. 16, 2022. (Reuters/Bing Guan)

FedEx Corp on Thursday raised its fiscal 2023 earnings outlook to $13.80 to $14.40 per share, compared with its previous forecast of $12.50 to $13.50 per share.

The company's shares rose about 8% to $220 in after-market trading.

The Memphis, Tennessee-based company has already announced plans to wring out $3.7 billion in costs this year by shuttering offices, cutting staff, grounding airplanes, canceling profit-sapping Sunday deliveries in far-flung areas and furloughing workers in its freight division.

FedEx reported a net income of $771 million, or $3.05 per share in the third quarter, compared with $1.11 billion, or $4.20 per share a year earlier.

Revenue fell to $22.2 billion from $23.6 billion.

Dollar General store, Berlin, N.J., Dec. 25, 2022

Dollar General Corp on Thursday missed Wall Street estimates for fourth-quarter results as the retailer struggled with surging costs and a decline in customer traffic at its stores.

The discount store chain said despite a "modest decrease in customer traffic" in the reported quarter, it saw an increase in average transaction amount, and reiterated its full-year same-store sales and profit forecasts made in February.

LIFESTYLE

Dollar General invests $100M in staffing, store enhancement

Discount retailer Dollar General is investing further into its staffing. However, its focus will be on 'investing in hours' according to CEO Jeff Owen,

Dollar General said on Thursday it would invest about $100 million in its stores, primarily in incremental labor hours as it looks to enhance store standards and in-store experience.

Same-store sales for the company climbed 5.7% in the fourth quarter ended Feb. 3, but missed analysts' average estimate of a 6% increase, according to Refinitiv data, due to inventory damages caused by winter storm Elliott.

The company earned a profit of $2.96 per share. Analysts were expecting $2.97 per share.

Zale jewelry store is seen in Broomfield, Colo., Sept. 9, 2009. (Reuters/Rick Wilking)

Signet Jewelers Ltd. on Thursday reported profit of $277.3 million in its fiscal fourth quarter.

On a per-share basis, the Hamilton, Bermuda-based company said it had net income of $5.02. Earnings, adjusted for non-recurring costs, were $5.52 per share.

The jewelry company posted revenue of $2.67 billion in the period.

For the year, the company reported profit of $376.7 million, or $6.64 per share. Revenue was reported as $7.84 billion.

For the current quarter ending in April, Signet said it expects revenue in the range of $1.62 billion to $1.65 billion.

The company expects full-year earnings in the range of $11.07 to $11.59 per share, with revenue ranging from $7.67 billion to $7.84 billion.

Former FTX Chief Executive Sam Bankman-Fried, who faces fraud charges over the collapse of the bankrupt cryptocurrency exchange, exits the Manhattan federal court in New York City, Feb. 16, 2023. (Reuterts/Eduardo Munoz)

Bankrupt cryptocurrency exchange FTX made transfers of about $2.2 billion to company founder Sam Bankman-Fried through related entities, the company's new management said.

Overall more than $3.2 billion was transferred through payments and loans to company founders and key employees, FTX said in a statement on Wednesday.

MARKETS

FTX transferred $2.2B to Sam Bankman-Fried, new management says

Sam Bankman-Fried reportedly had received more than $2 billion from FTX entities according to court filings made by the new management of the cryptocurrency exchange.

These payments were made chiefly from Alameda Research hedge fund, FTX said, adding that it made these disclosures by filing schedules and statements of financial affairs with the bankruptcy court.

The crypto exchange said the transfers did not include over $240 million spent to purchase luxury property in the Bahamas, political and charitable donations made directly by the FTX debtors, and substantial transfers to non-debtor units in the Bahamas and other jurisdictions.

A lawyer for Bankman-Fried declined to comment.

Treasury Secretary Janet Yellen takes her seat to testify before the Senate Finance committee about the President's proposed budget request for the fiscal year 2024, Mar. 16, 2023, on Capitol Hill in Washington. (AP Photo/Jacquelyn Martin)

 A week after the second-largest bank collapse in U.S. history, Treasury Secretary Janet Yellen told the Senate Finance Committee on Thursday that the nation's banking system “remains sound” and Americans "can feel confident” about their deposits.

Yellen is the first Biden administration official to face lawmakers over the decision to protect uninsured money at two failed regional banks, a move that some Republicans have criticized as a bank “bailout.”

ECONOMY

Yellen says US banking system 'remains sound' in wake of recent turmoil

Silicon Valley Bank collapsed late Friday morning after a run on the bank, roiling global financial markets amid fears of a possible liquidity crisis.

“The government took decisive and forceful actions to strengthen public confidence” in the U.S. banking system, Yellen said in testimony before the committee. “I can reassure the members of the Committee that our banking system remains sound, and that Americans can feel confident that their deposits will be there when they need them."

European Central Bank (ECB) President Christine Lagarde speaks during a news conference following the ECB's monetary policy meeting in Frankfurt, Germany, Mar. 16, 2023. (Reuters/Heiko Becker)

The European Central Bank raised interest rates by 50 basis points on Thursday as promised to curb inflation, ignoring financial market chaos and calls by investors to dial back policy tightening at least until sentiment stabilizes.

The ECB has been raising rates at its fastest pace on record, but a rout in global markets since the collapse of Silicon Valley Bank (SVB) in the United States last week had threatened to upend those plans at the last moment.

MARKETS

ECB backs rate hike despite banking sector chaos

The European Central Bank announced another big spike in interest rates as the global banking sector reels from SVB, Credit Suisse and potential bank collapses.

In line with its often-repeated guidance, the central bank for the 20 countries that share the euro lifted its deposit rate to 3%, the highest level since late 2008, as inflation is seen overshooting its 2% target through 2025.

"Inflation is projected to remain too high for too long," ECB President Christine Lagarde told a news conference, reading from the statement agreed by the bank's policymakers.

Home for sale in Voorhees, N.J., Nov. 20, 2022

The average long-term U.S. mortgage inched back down this week after five straight weeks of increases, good news for homebuyers as the housing market's all-important spring buying season gets underway.

MARKETS

Mortgage rates drop to stall rising trend

Weekly data compiled by Freddie Mac shows mortgage rates are down following an increase of more than half a percent over five consecutive weeks. The 30-year fixed-rate mortgage (FRM) averaged 6.60% while the 15-year rate was 5.9%.

Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate slid back to 6.60% from 6.73% last week. The average rate a year ago was 4.16%.

The average long-term rate hit 7.08% in the fall — a two-decade high — as the Federal Reserve continued to raise its key lending rate in a bid to cool the economy and quash persistent, four-decade high inflation.

Kellogg's cold cereal products are pictured in a market after Kellogg Company announced it would split into three independent companies, in the latest U.S. corporate overhaul aimed at simplifying its structure and sharpening its focus on the snack business, in New York, U.S., June 21, 2022. (Reuters/Mike Segar)

Kellogg Co's global snacking business will be called "Kellanova" following the spin-off of its North American cereal unit, the packaged food giant said on Wednesday, as the company splits itself in two to sharpen focus of each division.

MARKETS

Kellogg will split into two companies. Here are the names

Kellogg Company on Wednesday released what the two separate companies that it intends to split into will be called. One will take the name Kellanova while the other will be WK Kellogg Co.

The cereal business – home to brands including Kellogg's, Froot Loops and Rice Krispies – will be named "WK Kellogg Co," after company founder W.K. Kellogg, who created Corn Flakes in 1894.

While the company names will change upon the spin-off, which Kellogg intends to complete by the end of this year, the "Kellogg's" brand will remain on the packaging of both companies' products around the world.

Kellogg, which last year unveiled plans to split into three independent companies, last month reversed its strategy and said its plant-based meat business, known for its MorningStar Farms brand, would remain in-house.

Kellanova will house the MorningStar Farms label, along with Pringles, Cheez-It, Pop-Tarts and other snack brands. The business will also oversee international cereal brands including Frosties, Zucaritas, and Miel Pops.

Five Below store in Berlin, N.J., Dec. 25, 2022

Five Below Inc. on Wednesday reported fiscal fourth-quarter profit of $171.3 million.

The Philadelphia-based company said it had profit of $3.07 per share.

The results exceeded Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of $3.06 per share.

The discount retailer posted revenue of $1.12 billion in the period, also surpassing Street forecasts. Eleven analysts surveyed by Zacks expected $1.11 billion.

For the year, the company reported profit of $261.5 million, or $4.69 per share. Revenue was reported as $3.08 billion.

For the current quarter ending in April, Five Below said it expects revenue in the range of $723 million to $735 million. Analysts surveyed by Zacks had expected revenue of $634.1 million.

The company expects full-year earnings to be $5.25 to $5.76 per share, with revenue ranging from $3.49 billion to $3.59 billion.

TotalEnergies logos are seen at a fuel station in Nice, France, Oct. 10, 2022. (Reuters/Eric Gaillard)

Convenience store operator Alimentation Couche-Tard is in exclusive talks to buy some of French energy company TotalEnergies retail assets for 3.1 billion euros ($3.29 billion) in cash, the Canadian company said on Thursday.

The proposed deal would comprise all of the stores at TotalEnergies' service stations in Germany and the Netherlands as well as a 60% controlling interest in its stores in Belgium and Luxembourg.

The purchase price of about 3.1 billion euros is on a cash-free, debt-free basis, subject to closing adjustments, the Couche-Tard statement said.

Couche-tard said it plans to fund the deal with available cash along with existing and credit facilities and new debt.

($1 = 0.9422 euros)

Occidental Petroleum is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, April 30, 2019. (Reuters/Brendan McDermid)

Warren Buffett's Berkshire Hathaway Inc purchased more Occidental Petroleum Corp shares, increasing its stake in the oil company to about 23.1%, a regulatory filing showed on Wednesday.

Berkshire paid about $466.68 million for 7.9 million Occidental shares between March 13 and March 15, according to the filing.

Earlier this month, filings revealed that Berkshire Hathaway had resumed its purchases of Occidental Petroleum Corp shares after a five-month hiatus.

The Omaha, Nebraska-based company company now owns about 208.04 million Occidental shares worth $11.81 billion, based on Wednesday's closing price of $56.80.

Berkshire began buying large quantities of the Houston-based company's stock about one year ago.

Fox News Digital | istock

The number of Americans filing new claims for unemployment benefits fell more than expected last week, pointing to continued labor market strength, though financial markets turmoil is casting a shadow over the economy.

Initial claims for state unemployment benefits dropped 20,000 to a seasonally adjusted 192,000 for the week ended March 11, the Labor Department said on Thursday. Economists polled by Reuters had forecast 205,000 claims for the latest week.

Labor market tightness, marked by 1.9 job openings for every unemployed person in January, together with stubbornly high inflation argue for the Federal Reserve to continue raising interest rates next week.

Reuters contributed to this post.

(Courtney Crow/New York Stock Exchange via AP)

Silver, like other commodities including gold and oil, is a haven for traders during times of economic downturn, and particularly inflation, where the strength of the U.S. dollar is weakened, and investors begin looking for material wealth. 

MARKETS

Gold and silver boom predicted as US hits debt ceiling, dollar devalues

Precious metals expert predicts gold and silver will rise in 2023 as government spending results in increased inflation and U.S. hits debt ceiling.

A Kitco News online survey showed investors could see silver jump more than 50% this year to reach $38 an ounce.

While the volatility of silver prices can be two to three times greater than that of gold on a given day, silver’s increasing applications in industry could begin closing the gap on the yellow metal in 2023, particularly as the automotive sector makes greater shifts to electric, and alternate forms of energy are harnessed through solar.

Often considered recession or inflation-proof, silver outpaced the three major U.S. stock averages in 2022. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all finished lower last year.

MARKETS

Credit Suisse to borrow up to $54B from Swiss National Bank

Credit Suisse announced it will borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank to boost liquidity.

Credit Suisse makes another move to survive as the outlook for the investment bank still remains uncertain which is adding pressure to U.S. bank stocks still reeling from the collapse of Silicon Valley Bank.