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"What we've seen is deposit pressures escalate more than previously anticipated," said Alexander Yokum, analyst at CFRA Research, who has a neutral view on regional banks. "A lot of these regional banks, they have less deposits, so if they lose deposits, it can really impact their operating results," Yokum said. "So, higher for longer, I think for a lot of regional banks, would be negative." Here's what Wall Street analysts expect from regional banks this season. Other regional banks reporting this week include Fifth Third Bancorp .
Persons: Alexander Yokum, Yokum, Goldman Sachs, Ryan M, Nash, America's Ebrahim H, Poonawala, CFRA's Yokum, Citi's Keith Horowitz, " Horowitz, Huntington Bancshares Huntington Bancshares Organizations: Regional Banking, U.S . Bancorp, New York Community, CFRA Research, JPMorgan Chase, T Bank, PNC, " Bank, America's, U.S . Bancorp U.S . Bancorp, U.S . Bank, Bank of America, Huntington, Comerica KeyCorp, Comerica, Fifth Third Bancorp Locations: U.S, New, Ohio
Heightened tensions in the Middle East, including the possibility of Iran attacking Israel, sent stocks back down and oil prices higher. If the choice is between a weak economy with lower rates or a strong economy with higher rates, we'll take the strong economy every time. Low rates may help with valuation multiples, but it's a strong economy that leads to earnings growth and that's what we, as long-term investors care about. Shelter costs are a major sticking point for overall inflation, which makes Tuesday's housing starts and building permits report a key watch item. We'll get another look at housing with the release of the March existing home sales report on Thursday.
Persons: we've, we'll, Morgan Stanley, Wells, bode, we're, Goldman Sachs, Charles Schwab, Johnson, ERIC, JB Hunt, Kinder Morgan, DR, Ally, Huntington, Jim Cramer's, Jim Cramer, Jim, Abbott, Ethan Miller Organizations: Dow Jones, Wednesday, Federal Reserve, Abbott Labs, Cardiovascular Systems, Diagnostics, Procter & Gamble, Constellation Brands, Procter, T Bank, Bank of America, Bank of New York Mellon, BK, PNC Financial, PNC, Ericsson, United Airlines, Interactive, ASML Holdings, US Bancorp, Citizens, Alcoa, CSX, Discover Financial, Nokia, Alaska Air, Blackstone BX, McLennan, Netflix, PPG Industries, Gamble, Financial, American Express, Jim Cramer's Charitable, CNBC, Las Vegas Convention, Getty Locations: Iran, Israel, China, Marsh, Las Vegas , Nevada
"We are reinstating coverage of AVGO with a buy rating and a new price target of $1,500." "We are upgrading Take-Two from Neutral to Buy and raising our target price from $170 to $200." KeyBanc reiterates Nvidia as overweight Key raised its price target on the stock to $1,200 per share from $1,100. Oppenheimer reiterates Alphabet as outperform Oppenheimer raised its price target on the stock to $185 per share from $172. "We resume coverage after a period of Rating Suspended with a Buy/High Risk (1H) rating and target price of $11."
Persons: Morgan Stanley, Jefferies, Piper Sandler, Piper, selloff, Goldman Sachs, Goldman, Bernstein, Tesla, underperform Bernstein, Wolfe, Eaton, underperform, ETN, Needham, it's, KeyBanc, Oppenheimer, Chipotle, Stefan Larsson, Zac Coughlin, Investor Relations Sheryl Freeman, Evercore, Cantor Fitzgerald, Cantor, Nvidia, Huntington, BTIG, Truist, Melius, Dell Organizations: Norfolk Southern, CP, NSC, JPMorgan, GE, Deutsche Bank reinstates Broadcom, Deutsche, Tesla, Citi, Netflix, AMD, ARM, Meta, Google, NASDAQ, Investor Relations, Disney, Susquehanna, Nvidia, Bank of America, of America, U.S, TAM, Dell, Apple Locations: FSLY, F1Q
Analysts at Morgan Stanley have named a slate of stocks to buy as March gets underway. The firm said investors should bet on the market's momentum by scooping up shares of undervalued companies. They include HashiCorp , Rivian Automotive , Dell Technologies, Sun Country Airlines and Huntington Bancshares. The stock is down 26% over the last 12 months, but the firm said investors should buy the dip. HashiCorp Analyst Sanjit Singh upgraded the cloud-computing infrastructure company to overweight from equal weight earlier this week.
Persons: Morgan Stanley, scooping, Ravi Shanker, Shanker, Sanjit Singh, Singh, Adam Jonas, , Jonas, Rivian, Dell, , Huntington, HBAN Organizations: CNBC, Rivian Automotive, Dell Technologies, Sun Country Airlines, Huntington, Amazon, Rivian, Airlines Locations: Huntington Bancshares
UBS downgrades Waste Management to neutral from buy UBS said the trash company has a "lofty" valuation. Citi reiterates Nvidia as buy Citi said its standing by its buy rating heading into earnings next week. " UBS upgrades HF Sinclair to buy from neutral UBS said the refiner is underappreciated. UBS upgrades Huntington Bancshares to buy from neutral UBS said it sees "strong strategic positioning" for the regional bank. Citi downgrades GlobalFoundries to neutral from buy Citi downgraded the semi company following earnings on Tuesday.
Persons: Wells, Redburn, Morgan Stanley, Tesla, it's, Piper Sandler, Piper, Jane Fraser's, Q, BRKRs, BRKR, DINO, D.A, Davidson downgrades Airbnb, Evercore, GlobalFoundries, Bernstein, Wingstop Organizations: Wells, RBC, Enphase Energy, Shoals Technologies, SolarEdge Technologies, UBS downgrades Waste Management, UBS, Citi, Nvidia, JPMorgan, Sinclair, diesel, Deutsche Bank, General, Deutsche, GE, ABNB, ABNB's, Walmart, ISI, Huntington, HSBC, Palantir, HP, Bank of America, of America, Design Systems, Rivals Locations: EBITDA
Morgan Stanley initiates Ford as a top pick Morgan Stanley said it's standing by its top pick status on Ford. Morgan Stanley initiates Dynatrace as equal weight Morgan Stanley initiated the software stock with an equal weight and said patience is needed. Morgan Stanley reiterates Disney as overweight Morgan Stanley said Disney's participation in a sports streaming bundle is 'low-risk." Morgan Stanley adds Huntington Bancshares to the financials finest list Morgan Stanley added the regional bank to its financials finest list. Morgan Stanley reiterates Rivian as overweight Morgan Stanley said it's standing by its overweight rating on the stock, but that the company will need "substantial funding" to complete its Georgia plant.
Persons: Goldman Sachs, Goldman, ANET, hyperscaler, Morgan Stanley, Ford, it's, Dynatrace, Redburn, Evercore, Susquehanna, Piper Sandler, Trimble, Piper, Riley, Bernstein, Disney, Huntington Bancshares, Huntington, Banks, Stephens, Cantor Fitzgerald, Stratasys, Cantor, Rivian Organizations: Arista Networks, Ford, downgrades, Airlines, UBS, Nvidia, NextEra Energy Partners, Taiwan Semiconductor, Apple, Apple Services, DIS, FOX, Deutsche Bank, Walmart, Citi, GSK, " Bank of America, of America Locations: NVDA's, North America, NAPA, Georgia
Jefferies initiates Sprout Social as buy Jefferies said the social media software provider is a market leader. Morgan Stanley names Huntington Bancshares a top pick Morgan Stanley said it likes the regional bank's low exposure to commercial real estate. Morgan Stanley reiterates Nvidia as overweight Morgan Stanley raised its price target on Nvidia to $750 per share from $603. Morgan Stanley downgrades Aptiv to underweight from equal weight Morgan Stanley said it sees slowing growth for the automotic tech company. Jefferies initiates ZoomInfo as buy Jefferies initiates the software data company with a buy and says it sees new customer growth.
Persons: Redburn, Key, it's, Gordon, Gordon Haskett, Jefferies, Steven Madden, Morgan Stanley, Huntington, Morgan Stanley downgrades Aptiv, Piper Sandler, Piper, Davidson, Goldman Sachs, Goldman, DA Davidson, it's bullish, Oppenheimer Organizations: Services, Bank of America, Google, Leerink, SPT, Citi, JPMorgan downgrades New York Community Bancorp, JPMorgan, Jefferies, Nvidia, Crown Holdings, Holdings, Civitas Resources, Corp, Vans, VF Corp, Bank of America downgrades, York Community Bancorp, New, Apple, Apple's Locations: F24E, New York
New York CNN —Stocks of small US lenders are still in the doldrums nearly a year after the regional banking crisis. The KBW Nasdaq Regional Banking index, which tracks the performance of regional lenders and thrifts, has fallen more than 2.4% this year compared to the benchmark S&P 500’s 2.6% gain. “This development is likely to … challenge the health of regional banks,” wrote José Torres, senior economist at Interactive Brokers, in a note on Thursday. Regional bank stocks struggled for much of 2023 after the collapses of Silicon Valley Bank and Signature Bank sparked a flight on deposits and sent shockwaves through the stock and bond markets. High interest rates threatened to put pressure on regional banks’ bond portfolios and squeeze their bottom lines, creating a good old-fashioned bank run.
Persons: Huntington, PNC Financial Service’s, , José Torres, Alex McGrath, , McGrath, Samantha Murphy Kelly, David McQueen, ” Read, Bryan Mena Organizations: CNN Business, Bell, New York CNN, Nasdaq, PNC Financial Services, PNC, Comerica Inc, US Bancorp, Citizens, PNC Financial, Federal Reserve, Interactive Brokers, Valley Bank, Signature Bank, First, Bank, Microsoft, Apple, ABI Research, Gross, Commerce Department Locations: New York, China
The stock of Club holding Morgan Stanley (MS) dropped to $70 from $100 before bouncing back to $80 when interest rates recently peaked. Morgan Stanley and Schwab did nothing bad or shameful, but their multiples are shadows of their former selves. At least Morgan Stanley has a nice dividend yield of 4.25%. Key, Huntington, First Horizon, Morgan Stanley and Schwab are all good franchises that are regarded as cheap. The Morgan Stanley headquarters is seen in New York City on Jan. 17, 2023.
Persons: It's, Huntington Bancshares, Stephen Steinour, Chris Gorman, Bryan Jordan, Morgan Stanley, That's, Charles Schwab, Schwab, We're, Macy's, Albert Bourla, Myers, Meyers, Eli Lilly, let's, Mills, Campbell Soup, WK Kellogg, McCormick, Neutrogena, Johnson, Edwards, Zimmer Biomet, Becton Dickenson, Baxter, BAX, Ford, Hess, Tesla, Jim Cramer's, Jim Cramer, Jim, Michael M Organizations: Dominion, Federal Reserve, Nordstrom, Pfizer, Bristol, Myers, Hostess Brands, Novo Nordisk, PepsiCo, Hershey, Brands, Spice, Johnson, Moderna, American Electric Power, Duke Energy, Motors, JetBlue, EOG Resources, ConocoPhillips, Exxon Mobil, Nvidia, Apple, Federal Trade Commission, CNBC, Santiago, Getty Locations: Huntington, Memphis, Tennessee, Toronto, United States, Celgene, Bristol, New York City
Oct 20 (Reuters) - Shares of mid-sized U.S. banks fell on Friday after a string of earnings reports heightened investor concerns that the boost to lenders from the Federal Reserve's interest rate hikes was tapering off. Regions Financial (RF.N) dropped to the lowest level since March, when an industry crisis began following an outflow of deposits that engulfed three banks. The lender, shares of which were last down 11% at $14.71, said it expects net interest income (NII) in the fourth quarter to decline about 5% from current levels. Huntington Bancshares' (HBAN.O) stock dipped 1.3%, while Comerica (CMA.N) dropped 6.6%, dragging down the S&P 500 Banks index (.SPXBK) by 2.1%. Huntington Bancshares posted an 8% drop in third-quarter profit as interest income declined.
Persons: Wells, Mike Mayo, Mayo, Terry McEvoy, Huntington Bancshares, NII . Huntington Bancshares, Jaiveer Singh, Shilpi Majumdar Organizations: Regions, Regions Financial, Reuters, Stephens, Comerica, Third Bancorp, Thomson Locations: NII ., Bengaluru
Bank of America reiterates Disney as buy Bank of America said it's standing by its buy rating on the stock. Morgan Stanley reiterates Ford as overweight Morgan Stanley said it's standing by its overweight rating on shares of Ford despite the United Auto Workers strike. Canaccord reiterates Tesla as buy Canaccord said its standing by its buy rating on Tesla ahead of its upcoming delivery numbers report. Morgan Stanley reiterates Apple as overweight Morgan Stanley said it's standing by its overweight rating on shares of Apple. Morgan Stanley reiterates Amazon as overweight Morgan Stanley said Amazon continues to be the "dominant" player in e-commerce.
Persons: Jefferies, Edward Jones downgrades Berkshire Hathaway, Edward Jones, Morgan Stanley, Ford, it's, Canaccord, Tesla, we've, Goldman Sachs, Raymond James, Bud Light, Apple, Amazon, Brinker, Stifel, Huntington Organizations: Jefferies, Ball Corporation, Bank of America, Disney, DIS, CYE23, Texas, 3Q23, Brands, Burger King, Ford, United Auto Workers, HSBC, FedEx, UPS, DHL, Nike, Immunology, " Bank of America, Anheuser, Busch InBev, of America, Apple, Citi Locations: Texas, QSR, North America, Asia, ZION
Cramer's Lightning Round: Alphabet is a buy
  + stars: | 2023-08-21 | by ( Julie Coleman | ) www.cnbc.com   time to read: +2 min
Stock Chart Icon Stock chart icon Applied Materials' year-to-date stock performance. Stock Chart Icon Stock chart icon Telus International's year-to-date stock performance. Stock Chart Icon Stock chart icon Tutor Perini's year-to-date stock performance. Stock Chart Icon Stock chart icon Nio's year-to-date stock performance. Stock Chart Icon Stock chart icon Huntington Bancshares' year-to-date stock performance.
Persons: They're, Perini, They've, I'm, I'd, Huntington Bancshares, Huntington Organizations: Telus
Moody's cut the ratings of 10 U.S. banks by one notch and placed some banking giants on review for potential downgrades. The downgraded banks include M&T Bank (MTB.N), Pinnacle Financial Partners (PNFP.O), Prosperity Bank and BOK Financial Corp (BOKF.O). The banks placed on review for downgrade include BNY Mellon (BK.N), US Bancorp (USB.N), State Street (STT.N) and Truist Financial (TFC.N). Moody's changed its outlook to negative from stable for Capital One (COF.N), Citizens Financial (CFG.N) and Fifth Third Bancorp (FITB.O), among others. The ratings agency also affirmed the ratings of PNC Financial Services Group (PNC.N), Citizens, and Huntington Bancshares (HBAN.O) alongside other banks.
Persons: Moody's, BNY Mellon, Huntington, Juby Babu, Muralikumar Anantharaman Organizations: Moody's Corporation, T Bank, Pinnacle Financial Partners, Prosperity Bank, BOK Financial Corp, BNY, US Bancorp, Truist, Silicon Valley Bank, Signature Bank, Citizens, Fifth Third Bancorp, PNC Financial Services, Thomson Locations: Manhattan , New York, U.S, Silicon, Bengaluru
The rule, which would implement a 2017 agreement by global regulators, aims to overhaul how banks gauge their riskiness, and in turn how much money they must keep on hand. Industry opponents have already begun to criticize the plan as banks seek to soften, delay, or otherwise derail the government's long-planned effort. The proposal would see U.S. regulators implement a previous global agreement via the Basel Committee on Banking Supervision. "Bank capital is critical," said Dennis Kelleher, president and CEO of Better Markets, which advocates for tougher financial rules. "However, maximizing Wall Street’s bonuses depends on minimizing capital and that’s why Wall Street fights to prevent regulators from requiring them to have enough capital."
Persons: it’s, Ian Katz, JPMorgan Chase, Morgan Stanley, Michael Barr, Barr, Joe Biden, Dennis Kelleher, Pete Schroeder, Susan Heavey Organizations: Federal Deposit Insurance Corporation, Federal, Industry, Washington, Capital Alpha Partners, JPMorgan, Banking Supervision, Citizens Financial, Bank, Better, Thomson Locations: U.S, Basel, Huntington, that’s
July 21 (Reuters) - Huntington Bancshares (HBAN.O) beat Wall Street estimates for second-quarter profit on Friday, as it earned more from rising interest rates and saw strong demand for its commercial loans. "There is increasing optimism around a very modest slowdown, (or) recession," the bank's CEO Stephen Steinour said, citing stimulus spending from the government. "The interest rate outlook has continued to change," said Steinour, adding there are expectations that rates will remain higher for a longer period. Huntington earned $0.35 per share in the second quarter versus analysts' average estimate of $0.34 per share, according to Refinitiv IBES data. Total deposits at Huntington were $148 billion, up nearly 2% from the first quarter.
Persons: Huntington, Stephen Steinour, NII, Niket, Saeed Azhar, Shweta Agarwal, Deepa Babington Organizations: U.S . Federal Reserve, Comerica, Fifth Third Bancorp, Thomson Locations: U.S, Columbus , Ohio, Huntington, Bengaluru, New York
A lot was riding on these important measures of inflation after the scorching-hot ADP jobs report last week. Here are 3 things you need to know for the week ahead: 1. Industrial production and capacity utilization, also out Tuesday, shines a light on manufacturing, which attributes about 12% to U.S. GDP. Six months is generally considered to represent a balance between supply and demand in the housing market. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.
Persons: Stocks, Morgan Stanley, Johnson, Jeff Miller, Lockheed Martin, Charles Schwab, JB Hunt, Goldman, Baker Hughes, Ally, Kinder Morgan, Zions, Philip Morris, Abbott, ABT, Jim Cramer's, Jim Cramer, Jim, Scott Olson Organizations: Nasdaq, Dow Jones Industrial, Housing, CPI, Halliburton, HAL, Johnson, of America Corp, Lockheed, Lockheed Martin Corp, Novartis International AG, PNC Financial Services Group, Inc, PNC, Charles Schwab Corp, Bank of New York Mellon Corporation, BK, Synchrony, Interactive, Goldman Sachs Group, U.S . Bancorp, ASML, Citizens Financial, T Bank Corp, Northern Trust Corporation, Horizon National Corp, Business Machines Corp, IBM, United Airlines, Netflix, Steel Dynamics, Alcoa, Discover Financial Services, Crown, International Corp, Equifax Inc, Las Vegas Sands Corp, Liberty Energy Inc, Philip Morris International Inc, Taiwan Semiconductor Manufacturing Company, American Airlines Group Inc, Travelers Companies, SAP, Nokia Corp, Truist Financial Corporation, Company, McLennan Companies, Infosys Technologies Ltd, Newmont Mining Corp, Fifth Third Bancorp, Pool Corporation, Alfa Laval, Webster Financial Corp, Blackstone, Financial Corp, PPG Industries, CSX Corp, CSX, Berkley Corp, Swift Transportation Holdings Inc, American Express Co, AutoNation Inc, Interpublic, of Companies, Autoliv Inc, Huntington Bancshares, Financial Corporation, Roper Technologies, Comerica, Jim Cramer's Charitable, CNBC, Getty Locations: U.S, Las, ZION, Horton, Freeport, Marsh, ALFVY, W.R, Lemont , Illinois
The continued slide for regional bank stocks after the failure of First Republic last week has created some buying opportunities in the sector, according to Wall Street analysts. "We believe this recent stock reaction is overdone as there is currently no evidence of accelerating deposit outflows. We see accelerating deposit costs, not accelerating deposit outflows, as the most significant headwind for the midcap banks over the next several quarters," Gosalia wrote. Huntington and Webster also rise to the top of the heap for RBC Capital Markets analyst Jon Arfstrom. Both Huntington and Webster are down about 30% for the year, which is better than the SPDR S & P Regional Banking ETF (KRE).
The flight of deposits at Fifth Third Bancorp (FITB.O), Comerica (CMA.N), Truist Financial Corp (TFC.N) and KeyCorp (KEY.N) dampened gains that the lenders made in their interest income benefiting from the U.S. Federal Reserve's aggressive monetary policy tightening through the past year. Only, Huntington Bancshares Inc (HBAN.O), among banks reporting on Thursday, managed to grow average total deposits by $472 million from the prior quarter. In the aftermath, the KBW Regional Banking Index (.KRX) has tumbled 19.4% this year, through previous close. Clients are expected to continue the shift toward other assets that bring in higher returns unless the banks increase returns, analysts have said. Citizens Financial (CFG.N) on Wednesday cut its forecast for net interest income, expecting an increase in the rate it pays out for deposits to clients.
Corporate earnings won't have to share the spotlight with major inflation data in the week ahead as they did during this past week's up-and-down market. From Morgan Stanley, we suspect Friday's bank earnings foreshadow a good release. This past week, we spoke about the importance of listening to what industry players aside from those you're invested in as a way to analyze the competitive landscape. Here are some of those other earnings reports and the economic numbers out in the week ahead. Club trades of the week We made just one trade this past week, in a market that was overbought , purchasing 25 shares of Palo Alto Networks (PANW).
Deutsche Bank named industrial Club holding Honeywell (HON) a short-term investment idea, citing its "highly attractive portfolio at this point in the cycle." The firm maintained an overweight rating on JNJ stock and a price target of $195 per share. Susquehanna maintained a positive rating on the stock and price target of $260 per share. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.
Goldman Sachs upgrades Hartford to buy from neutral Goldman the insurance company could "surprise to the upside." Goldman Sachs upgrades Marathon Petroleum to buy from neutral Goldman said the petroleum company has a "best-in-class capital returns story." Bernstein reiterates Apple as market perform Bernstein said it's standing by its market perform rating after Apple debuted Apple Pay Later on Tuesday. Guggenheim reiterates McDonald's as buy Guggenheim says it sees "substantial" near-term and long-term upside for McDonald's. Goldman Sachs reiterates Regions Financial and Fifth Third as buy Goldman said in a note Wednesday that several regional banks are key beneficiaries of the larger bank fallout.
I think the industrial uses, the medical uses, the auto uses, the educational uses and the call center uses are front and center here. Multiple price target boosts for this Club stock. Increases price target to $154 per share from $100. Truist analysts increase price target to $20 per share from $15. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
He now faces renewed criticism over his agenda at the Fed, where he oversaw efforts to reduce regulations on regional banks. U.S. regional banks are expected to pay higher rates to depositors to keep them from switching to larger lenders, leaving them with higher funding costs. In 2008, regulators had to contend with billions of dollars in toxic mortgages and complex derivatives sitting on bank books. Currently, regional banks below $250 billion in assets have simpler capital, liquidity and stress testing requirements. "SVB is not a very complicated bank," said Dan Awrey, a Cornell Law professor and bank regulation expert.
March 14 (Reuters) - Shares of U.S. regional banks rose on Tuesday after suffering double-digit losses over the past few days following the biggest bank collapse since the 2008 global financial crisis. The collapse of Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) sent shockwaves through global markets, despite assurances from U.S. President Joe Biden and other policymakers that banks and deposits were safe. First Republic Bank (FRC.N) rose 57% before trading was halted for volatility, a day after hitting an intraday record low of $17.53. The S&P 1500 regional banks sub-industry index (.SPCOMBNKS) advanced 7.7% after shedding 20% in the past three sessions. Big banks rose with JPMorgan up 1.6%, Wells Fargo (WFC.N) 6.6% and Bank of America (BAC.N) 4.2%.
[1/2] A person walks past the Park Avenue location of the First Republic Bank, in New York City, U.S., March 10, 2023. REUTERS/David 'Dee' DelgadoMarch 13 (Reuters) - Shares of U.S. regional banks slumped on Monday, led by losses in First Republic Bank (FRC.N) as news of fresh financing failed to assuage bank contagion fears following the collapse of SVB Financial Group (SIVB.O) and Signature Bank (SBNY.O). The KBW regional banking index (.KRX) slipped 5.4%, and the S&P 500 banking index (.SPXBK) fell 6%. U.S. President Joe Biden vowed to do whatever was needed to address a potential banking crisis after the collapse of Silicon Valley Bank and Signature Bank. Among Wall Street lenders, Bank of America Corp (BAC.N) dropped 3.3%, Citigroup Inc (C.N) and Wells Fargo (WFC.N) slid about 6% each, while lenders in Asia and Europe plunged too.
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