Stocks ended Friday’s session lower, with the Dow down 1.2% and the S&P 500 ending 1.1% lower. The Nasdaq Composite shed 0.7%. The banking crisis brought on by the Silicon Valley Bank collapse has caused volatility over the past five sessions, with the Dow being the only index on track for a weekly loss. Despite this, the S&P 500 advanced 1.4% for the week and the Nasdaq Composite gained 4.4%. Charles Schwab saw strong client inflows of approximately $16.5 billion in core net new assets over the past five trading days through Thursday.
Important Details about Stock market today: Live updates –
– Stocks closed lower on Friday, with the Dow down 1.2%, S&P 500 down 1.1%, and Nasdaq Composite down 0.7%.
– The Dow was the only major index to close the week down, with a loss of 0.2%, while the S&P 500 gained 1.4%, and the Nasdaq Composite gained 4.4%.
– First Republic Bank’s stock continued to fall, down more than 30% in afternoon trading and over 70% from where it started the week.
– Plans to funnel $30 billion worth of deposits into First Republic Bank are seen as a positive step for the sector, according to analysts.
– The Federal Reserve’s decision on whether to raise interest rates at next week’s policy meeting could be impacted by the ongoing financial instability risk.
– Bumble’s stock gained 4.5% after Citi initiated coverage of the dating app with a buy rating.
– Energy stocks in the S&P 500 are down almost 7% this week, making it the worst performing sector, with financials coming in second worst, down 5.8%.
– Tight credit and supply could be a double whammy for the auto market, as banks may tighten lending standards and affect sales.
– Retail investors bought financial stocks in unprecedented amounts over the past week, according to Vanda Research.
An Hour Ago: Stocks close Friday down
Stocks ended Friday’s session lower, with the Dow down by 1.2%, the S&P 500 ending 1.1% lower, and the Nasdaq Composite shedding 0.7%. Even with the down session, the Dow was the only one of the major indexes to close the week down, with the S&P 500 advancing 1.4% for the week and the Nasdaq Composite gaining 4.4%.
2 Hours Ago: First Republic Bank selloff intensifies as investors look to weekend
First Republic Bank took another leg lower in afternoon trading, plunging more than 30% as investors positioned themselves in the final hour of trading this week. Friday’s nosedive has brought the stock down more than 70% from where it started the week. This drop has also weighed on the SPDR S&P Regional Banking ETF (KRE), which was down 6% on Friday and poised for a weekly loss of more than 14%.
2 Hours Ago: Wall Street says bank aid to First Republic should boost confidence in sector
Plans to funnel $30 billion worth of deposits into First Republic should restore confidence in the U.S. financial system and mitigate the likelihood of future bank runs. John Pancari of Evercore ISI wrote in a note that “We view the move by the industry as a positive step to stem contagion amid the regional bank crisis.” He added that it sends a message of broader stability for the sector, should help further temper depositor fears, and enables the bank to fight another day.
2 Hours Ago: Dow hits session low as investors ready for final hour of day and week
The Dow notched a new low for the session as investors readied for the final hour of the trading day and week. It traded more than 500 points down, with the S&P 500 and Nasdaq Composite also weakening to end the week.
2 Hours Ago: Coinbase shares pop on report of overseas crypto exchange
Crypto services firm Coinbase saw its shares jump 10% on Friday afternoon. The boost was due to a Bloomberg report indicating that the company is exploring an overseas trading venue as regulatory scrutiny of crypto businesses ramp up in the U.S. Coinbase has been working to diversify its revenue streams, but trading activity’s fees account for much of the revenue, and activity tends to pop when the bitcoin price rises.
3 Hours Ago: Schwab sees strong client inflows despite banking crisis
Westlake-based Charles Schwab announced that its clients brought in approximately $16.5 billion in core net new assets over the past five trading days through Thursday. Despite the banking crisis, the firm’s shares rose as the firm’s CEO and directors at Schwab scooped up company shares this week in what may prove a vote of confidence.
3 Hours Ago: Fed’s interest rate decision could be impacted by what happens over coming days
The Federal Reserve’s decision on whether to raise interest rates by 25 basis points or implement no rate hike at next week’s policy meeting could depend on what happens in the coming days. Nick Timiraos, chief economics correspondent at The Wall Street Journal, said that the central bank’s next decision on interest rates has been made less certain over the past week amid the bank crisis. Based on current understanding, there is a case to be made for going by 25 and skipping the rate rise.
3 Hours Ago: Citi says buy Bumble as dating app gains market share
Citi initiated coverage of the dating app Bumble with a buy rating. Analyst Ygal Arounian wrote that “Most importantly to us is that the core Bumble app has seen continued share gain within the online dating world, and recent product launches are leading to better conversion of paid users as well.”
4 Hours Ago: Stocks making the biggest moves midday
Warner Bros Discovery gained 2% after Wells Fargo upgraded the stock to overweight from equal weight. The firm said it liked the company’s debt reduction efforts. FedEx saw its stock jump over 8% after the company’s fiscal third-quarter earnings topped analysts expectations. On the other hand, pharmaceutical name Sarepta Therapeutics dropped nearly 20% after regulators said it will hold an advisory committee meeting for its SRP-9001 treatment for Duchene muscular dystrophy.
4 Hours Ago: There’s one sector performing worse than financials in the S&P 500 this week
Although financial stocks have been the talk of Wall Street this week, energy stocks within the broad index are down nearly 7% on the week. That’s the biggest drop of any of the index’s 11 sectors. Financials have performed the second worst over the course of the week, down 5.8%. Four of the index’s 11 sectors are on pace to post losses this week.
5 Hours Ago: Tight credit and supply could be a double whammy for auto market
Bank of America analysts said recent banking sector volatility could be bad news for the auto industry. It expects banks to tighten lending standards, which will make it harder for consumers to buy a new car. Auto loans performance is slightly better than pre-pandemic, but credit quality differs between prime and non-prime borrowers, and non-prime delinquencies are 20% above pre-pandemic levels. If a credit crunch develops, the forecast of auto sales for this year of 14.2 million, or a 4% gain from 2022, is at risk.
5 Hours Ago: Retail investors buying the dip in financial stocks
Retail investors bought financial stocks in unprecedented amounts during the past week until Wednesday, according to Vanda Research. The banking sector’s slump in the wake of Silicon Valley Bank’s failure, coupled with concerns over Credit Suisse’s financials, had retail investors turning to “traditional ‘too big to fail’ banks,” says Vanda Research’s SVP, Mario Iachini.