STOCK MARKET NEWS: Credit Suisse, First Republic shares fall in bank rut, FedEx jumps
Bank stocks remain volatile as investors weigh First Republic’s cash infusion, Credit Suisse faces more pressure as its future remains uncertain. FedEx delivers upbeat forecast as earnings season winds down. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
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Former Theranos CEO Elizabeth Holmes, middle, walks to federal court with her partner, Billy Evans, right, and her mother, Noel Holmes, in San Jose, Calif., Mar. 17, 2023. (AP Photo/Jeff Chiu)
Disgraced Theranos CEO Elizabeth Holmes on Friday made what might be her final court appearance before beginning a 11-year prison sentence , unless a judge grants her request to remain free while her lawyers appeal her conviction for masterminding a blood-testing hoax.
Before the hearing started, a man in the audience in the San Jose, California, courtroom tried to approach the table where Holmes was sitting while carrying a document in his hand. He was quickly intercepted by security officers who forcibly removed him. Holmes didn't appear flustered by the disruption.
The proceedings ended without a determination whether Holmes, 39, will be able to stay out of prison while her appeal unfolds or have surrender to authorities on April 27, as currently scheduled. Davila said he hopes to issue his ruling in early April.
The median U.S. home sale price fell 1.2% in February to $386,721, the first year-over-year decline since 2012.
Sellers have been forced to lower their expectations because high mortgage rates have put homebuyer demand on ice.
“Buyers are struggling because higher interest rates have increased the cost of homeownership, and sellers are struggling because they’re still adjusting to the fact that their home won’t sell for what their neighbor’s did a year ago,” said Andrew Vallejo, a Redfin real estate agent in Austin, Tex.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| FRC | $26.20 | -8.07 | -23.56 |
| CS | $1.98 | -0.18 | -8.33 |
| JPM | $126.32 | -4.43 | -3.39 |
| BAC | $27.91 | -1.06 | -3.66 |
| C | $44.30 | -1.31 | -2.88 |
| I:BKX | $79.03 | -4.14 | -4.98 |
U.S. stocks tumbled Friday, led by financials, as investors brace for more fallout in the banking sector as First Republic and Credit Suisse remain under pressure despite getting cash infusions this week. In commodities, oil fell 13% to $66.74 per barrel, while Bitcoin edged above the $26,000 level.
Weekly Performance:
Dow Jones Industrial Average: -0.6%
S&P 500: +1.4%
Nasdaq Composite: +4.4%
Former U.S. President Donald Trump's YouTube account is seen on a mobile phone and laptop computer after being restored by Google and its parent company Alphabet Inc, as Google lifted a more than two-year suspension imposed on Trump after the deadly Jan. 6, 2021 Capitol Hill riot, in Washington, Mar. 17, 2023. (Reuters/Jim Bourg)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| GOOG | $102.00 | 0.93 | 0.92 |
| META | $197.03 | -7.91 | -3.86 |
Alphabet Inc-owned YouTube said on Friday it lifted restrictions on former U.S. President Donald Trump's channel, following a more than two-year suspension after the deadly Capitol Hill riot on Jan. 6, 2021.
Trump now has access to key vehicles for political fundraising and the ability to reach his combined 146 million followers across three major tech platforms as he makes another run for the presidency in 2024.
"We carefully evaluated the continued risk of real-world violence, while balancing the chance for voters to hear equally from major national candidates in the run up to an election."
YouTube said in a tweet, referring to the move.
Meta Platforms Inc had reinstated Trump's Facebook and Instagram accounts earlier this year, while his Twitter account was restored in November by new owner Elon Musk.
Trump's campaign team did not immediately respond to a request for comment.
Is the crypto winter over? Bitcoin touched the $26,000 a rebound from the recent low of below $20,000 as investors rotate around shaky bank stocks amid the fallout of Silicon Valley Bank's implosion which includes First Republic Bank.
President Joe Biden speaks as he meets with Ireland's Taoiseach Leo Varadkar in the Oval Office of the White House, Mar. 17, 2023, in Washington. (AP Photo/Evan Vucci)
President Joe Biden on Friday called on Congress to allow regulators to impose tougher penalties on the executives of failed banks, including clawing back compensation and making it easier to bar them from working in the industry.
Biden wants the Federal Deposit Insurance Corporation to be able to force the return of compensation paid to executives at a broader range of banks should they fail, and to lower the threshold for the regulator to impose fines and bar executives from working at another bank.
He called on Congress to grant the FDIC those powers after the failures of Silicon Valley Bank and Signature Bank sent shockwaves through the global banking industry.
“Strengthening accountability is an important deterrent to prevent mismanagement in the future,” Biden said in a statement. “Congress must act to impose tougher penalties for senior bank executives whose mismanagement contributed to their institutions failing.”
| Symbol | Price | Change | %Change |
|---|---|---|---|
| JPM | $125.91 | -4.84 | -3.70 |
| BAC | $27.83 | -1.14 | -3.94 |
| WFC | $37.77 | -1.53 | -3.91 |
| C | $44.15 | -1.48 | -3.23 |
Parts of Silicon Valley Bank are still up for grabs and many of the big banks may be eyeing the assets, according to FOX Business' Charlie Gasparino.
First Republic Bank, in New York City, Mar. 10, 2023. (Reuters/David 'Dee' Delgado)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| FRC | $25.35 | -8.92 | -26.03 |
| CS | $2.02 | -0.14 | -6.71 |
Credit Suisse and First Republic Bank shares came under renewed pressure on Friday despite multibillion-dollar support deals, while a source said European Central Bank supervisors see no contagion for euro zone banks from the turmoil.
Shortly after Credit Suisse secured an emergency central bank loan of up to $54 billion on Thursday, big U.S. banks swooped in with a $30 billion lifeline for San Francisco-based First Republic, which has been under scrutiny since the collapse of two other mid-size U.S. banks.
U.S. banks have sought a record $153 billion in emergency liquidity from the U.S. Federal Reserve in recent days, surpassing a previous high set during the most acute phase of the financial crisis some 15 years ago.
This reflected "funding and liquidity strains on banks, driven by weakening depositor confidence," said ratings agency Moody's, which this week downgraded its outlook on the U.S. banking system to negative.
The Boeing 787 Dreamliner airplane is seen in Long Beach, Calif., Mar. 14, 2012. (Reuters/Lucy Nicholson)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BA | $200.50 | -2.69 | -1.32 |
Boeing confirmed on Thursday it delivered a 787 Dreamliner to German airline Lufthansa, its first since deliveries were halted in late February after it disclosed a data issue with a component.
The Federal Aviation Administration confirmed last month that Boeing had paused deliveries due to the data analysis error related to the jet’s forward pressure bulkhead, which the company found after reviewing certification records.
The FAA said Friday it was satisfied the issue has been resolved and approved Boeing to resume delivering 787s. Boeing is expected to deliver another 787 to American Airlines shortly, sources said.
The delivery caps off a big week for the 787 program. On Tuesday, Boeing announced a much anticipated sale of 78 Dreamliners to two Saudi airlines, a deal with a list price of $37 billion that the company touted as its fifth largest commercial order by value.
Between the Saudi deal and separate orders from United Airlines and Air India, Boeing has received orders for almost 200 Dreamliners over the past four months.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BLDP | $4.86 | -0.26 | -5.08 |
Ballard Power Systems Inc. on Friday reported a loss of $34.4 million in its fourth quarter.
On a per-share basis, the Burnaby, British Columbia-based company said it had a loss of 12 cents.
The results topped Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for a loss of 15 cents per share.
The fuel cell technology company posted revenue of $20.5 million in the period, falling short of Street forecasts. Nine analysts surveyed by Zacks expected $28.6 million.
For the year, the company reported that its loss widened to $173.5 million, or 58 cents per share. Revenue was reported as $83.8 million.
Ballard shares have climbed roughly 7% since the beginning of the year. The stock has decreased 53% in the last 12 months.
An American Airlines aircraft taxis as a Delta Air Lines aircraft lands at Reagan National Airport in Arlington, Va., Jan. 24, 2022. (Reuters/Joshua Roberts)
American Airlines, which gave up rights to two airport slots to Delta Air Lines' in 2013, on Thursday lost a court appeal to have the European Union cancel them for lack of use.
American gave up the takeoff and landing rights at Heathrow and Philadelphia airports to get antitrust approval for its merger with US Airway. Airlines may keep a slot in perpetuity provided they use it regularly. The European Commission picked Delta to take up the slots.
The EU Court of Justice (CJEU), Europe's highest, dismissed American's arguments that Delta did not fulfil its obligation to use the slots regularly.
"The text of the final commitments does not establish a specific number of frequencies that should be operated by the prospective entrant to ensure effective competition," the judges ruled.
American complained that Delta had not made appropriate use of the slots as required under grandfather rights, prompting the EU competition watchdog to issue a decision in 2018 backing its rival.
American challenged the decision at the General Court in 2020 but lost. It then appealed to the CJEU.
The case is C‑127/21 P, American Airlines v Commission.
Silicon Valley Bank, which was seized by the FDIC last Friday, did not fill a key management role at the company for months.
Despite receiving $30 billion in deposits from 11 of the largest U.S. banks including JPMorgan, Bank of America and Citigroup, shares of First Republic are down by double-digits on Friday.
American workers crazed by college hoops are expected to put a dent in economic productivity over the next few weeks as the games take precedent over the daily grind.
(Photo by Drew Angerer/Getty Images)
FedEx shares jumped Friday after the delivery giant 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.
“We’ve continued to move with urgency to improve efficiency, and our cost actions are taking hold, driving an improved outlook for the current fiscal year" said Raj Subramaniam, FedEx Corp. president and chief executive officer.
The company is slashing nearly $4 billion in costs by reducing staff, consolidating offices and reducing some weekend deliveries in less profitable areas.
Silicon Valley Bank officially files for Chapter 11 one week to the day after the FDIC seized bank roiling the bank sector which remains clouded in uncertainty as other smaller and regional banks continue to see their shares hammered.
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