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☆ Wall St retreats on debt ceiling jitters
▼ + stars: | 2023-05-19 | by ( Chuck Mikolajczak | ) www.reuters.com time to read: +4 min

[1/2] Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 14, 2023. Stocks had rallied over the past two sessions on growing confidence a deal to raise the $31.4 trillion debt limit could be reached in coming days, with the benchmark S&P 500 (.SPX) climbing more than 2%. The S&P 500 and Nasdaq were poised for their biggest weekly percentage gains since the final week of March. The warning weighed on Dow component Nike Inc (NKE.N), which lost 4.11%, while Under Armour Inc (UAA.N) fell 4.53%. The S&P 500 posted 28 new 52-week highs and three new lows; the Nasdaq Composite recorded 72 new highs and 69 new lows.

Deere & Co (DE.N) rose 4.4% after the heavy machinery company raised its annual net income forecast buoyed by robust farm incomes. The benchmark S&P 500 index (.SPX) and the Nasdaq (.IXIC) were set for their best weekly performance since late March amid positive debt ceiling talks, less-than-feared earnings and economic data. The S&P 500 banks index (.SPXBK) is on course to end the week 5.4% higher, snapping a three-week losing streak. Over 90% of S&P 500 companies have reported, of which around 77% beat earnings expectations, according to Refinitiv data. The S&P index recorded 27 new 52-week highs and one new low, while the Nasdaq recorded 58 new highs and 28 new lows.

S&P 500 futures hit a 15-week high in early trading, while Nasdaq e-minis breached levels not seen in nine months. The positive momentum carried through for much of the week as investors tracked progress in talks between top U.S. lawmakers for an agreement on increasing the $31.4 trillion debt ceiling. ET, Dow e-minis were up 101 points, or 0.3%, S&P 500 e-minis were up 12.25 points, or 0.29%, and Nasdaq 100 e-minis were up 6 points, or 0.04%. The benchmark S&P 500 index (.SPX) and the Nasdaq (.IXIC) were set for their best weekly performance since late March amid positive debt ceiling talks, less-than-feared earnings and economic data. The S&P 500 banks index (.SPXBK) is on course to end the week 5.3% higher, snapping a three-week losing streak.

☆ Analysis: Investment banking faultlines trigger European job shake-up
▼ + stars: | 2023-05-19 | by ( Sinead Cruise | ) www.reuters.com time to read: +5 min

Applications for financial services roles globally rose by 67% in the first quarter of 2023 against the same period last year, according to eFinancialCareers. Britain has already said it will scrap a cap on bank bonuses under plans to attract global financial sector talent. Worries about possible contagion triggered by the frailty of the U.S. regional banking system have also put some bank staff on a quest for more secure employment, sources say. Duncan Finlayson, managing director of the FinTech & Financial Services practice at Raines International, said some wanted meetings with chief financial officers to better understand the financial health of prospective employers. "Without a doubt some of the more established financial services platforms are under more heavy scrutiny," he said.

☆ Janet Yellen told bank CEOs more mergers may be necessary, sources say
▼ + stars: | 2023-05-19 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

New York CNN —During Thursday’s meeting with the CEOs of large banks, Treasury Secretary Janet Yellen told executives that more bank mergers may be necessary as the industry continues to navigate through a crisis, two people familiar with the matter told CNN. However, sources tell CNN that bank mergers were discussed during Yellen’s meeting with bank CEOs. Yellen echoed remarks from US regulators who have said there may be bank mergers in the current environment, one person familiar with the matter said. Yet earlier this month, regulators allowed JPMorgan Chase, the nation’s largest bank, to buy most of First Republic, the second-largest bank to fail in US history. Michael Hsu, acting comptroller of the currency, told lawmakers earlier this week that his agency would be willing to quickly consider bank mergers.

☆ Morgan Stanley CEO James Gorman plans to step down after years of making the bank the envy of Wall Street. Here's a look at his legacy.
▼ + stars: | 2023-05-19 | by ( Rebecca Ungarino | Alex Morrell | Dakin Campbell | ) www.businessinsider.com time to read: +11 min

Morgan Stanley CEO James Gorman said he will step down in the next 12 months. Morgan Stanley CEO James Gorman was giddy. Seeking stabilityTo understand where Morgan Stanley is now, you need to return to the peak of the financial crisis. It didn't take long before Morgan Stanley began utilizing its new license to acquire clients' deposits, reducing its reliance on wholesale funding. Mack, who helped design the 1997 Morgan Stanley and Dean Witter merger, had been pushed out by Purcell in 2001.

☆ Banking sector as a whole is strong and resilient, says Comptroller of the Currency Michael Hsu
▼ + stars: | 2023-05-19 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBanking sector as a whole is strong and resilient, says Comptroller of the Currency Michael HsuMichael Hsu, Acting Comptroller of the Currency, joins 'Closing Bell Overtime' to discuss testifying in front of congress, the regional banking sector, and more.

WASHINGTON, May 19 (Reuters) - U.S. Treasury Secretary Janet Yellen told bank CEOs on Thursday that more mergers may be necessary after a series of bank failures, CNN reported on Friday, citing two people familiar with the matter. The Treasury readout did not mention bank mergers, but CNN quoted sources as saying that consolidation was discussed. Yellen told Reuters in an interview in Japan last week that pressures on U.S. regional bank earnings may lead to more concentration in the sector and regulators will likely be open to such mergers. But the report that she gave a similar message directly to bank CEOs, alongside news that talks over the U.S. debt ceiling were at an impasse, had a significant impact on markets on Friday. Two-year Treasury yields initially dropped by some 11 basis points on Friday after the report, while benchmark 10-year yields fell by about five basis points.

☆ US regional bank stocks fall after Yellen says more bank mergers necessary
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, May 19 (Reuters) - Shares of U.S. regional lenders fell on Friday after CNN reported that U.S. Treasury Secretary Janet Yellen told bank chief executives that more mergers may be necessary following a series of bank failures. Yellen also reaffirmed the strength and soundness of the country's banking system at the meeting with bank CEOs on Thursday in the aftermath of the collapse of Silicon Valley Bank, Signature Bank, and First Republic Bank. The KBW Regional Banking Index (.KRX) fell 3%, with shares of PacWest Bancorp (PACW.O) and Western Alliance (WAL.N) among the biggest losers as they shed 4% each. The regional bank crisis has been partly blamed by some on aggressive interest rates by the U.S. Federal Reserve, which forced some lenders to seek new capital to make up for a fall in the value of assets linked to interest rates. The debt ceiling dispute has weighed on market sentiment, including for regional bank stocks.

☆ Our conviction in Morgan Stanley remains solid, despite the CEO's planned departure
▼ + stars: | 2023-05-19 | by ( Kevin Stankiewicz | In Kevinstankiewicz | ) www.cnbc.com time to read: +5 min

Jim on Friday matched Gorman's confidence in the future of Morgan Stanley, saying its stock looked very attractive at current levels. The day before Gorman took over as CEO, on Jan. 1, 2010, Morgan Stanley stock closed at $29.60 per share. Investors like steadiness, so they're willing to pay more for every dollar of wealth-and-asset-management revenue compared with investment banking and trading. Over time, this dynamic should allow Morgan Stanley to command a higher price-to-earnings ratio. James Gorman, chairman and chief executive officer of Morgan Stanley, speaks during a Bloomberg Television interview in Beijing, China, on Thursday, May 30, 2019.

☆ Futures edge higher on hopes of debt deal
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +2 min

SummarySummary Companies Futures up: Dow 0.10%, S&P 0.13%, Nasdaq 0.14%May 19 (Reuters) - U.S. stock index futures edged higher on Friday on optimism that a deal to avoid a catastrophic U.S. debt default could be reached over the weekend. ET, Dow e-minis were up 32 points, or 0.1%, S&P 500 e-minis were up 5.5 points, or 0.13%, and Nasdaq 100 e-minis were up 20 points, or 0.14%. S&P 500 futures hit a 15-week high in early trading, while Nasdaq e-minis breached levels not seen in nine months. The benchmark S&P 500 index (.SPX) and the Nasdaq (.IXIC) were set for their best weekly performance since late March amid positive debt ceiling talks, less-than-feared earnings and economic data. Reporting by Shreyashi Sanyal in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

☆ PacWest, Western Alliance lead rebound in US regional lenders
▼ + stars: | 2023-05-18 | by ( ) www.reuters.com time to read: +1 min

May 18 (Reuters) - Battered shares of PacWest Bancorp and Western Alliance Bancorp edged higher premarket on Thursday as the U.S. midsize lenders looked to sustain a recent rebound powered by bets that the worst of the regional banking turmoil was over. PacWest Bancorp (PACW.O), which is currently exploring strategic options, climbed 7.2% and was set to build on a 22% gain recorded for the week till Wednesday. Shares of Western Alliance (WAL.N) climbed 7.2%, also poised to extend their near 27% surge this week after the Phoenix-based lender reported strong deposit growth in an attempt to reassure investors of its financial health after three regional lenders failed in recent months. The KBW Regional Banking Index (.KRX) jumped 7.2% on Wednesday, recording its biggest percentage gain in nearly two years. Among other movers on Thursday, Zion Bancorp (ZION.O) climbed 2.6% and First Horizon (FHN.N) added 2.4%.

Companies Us Fuel International Inc FollowMay 18 (Reuters) - Oil prices eased on Thursday as traders warily watched for signs of progress on talks to raise the U.S. debt ceiling, after surging in the previous session on optimism over U.S. fuel demand. The U.S. dollar held near a seven-week peak on Thursday, making oil more expensive for holders of other currencies. President Joe Biden and top U.S. congressional Republican Kevin McCarthy on Wednesday underscored their determination to reach a deal soon to raise the federal government's $31.4 trillion debt ceiling and avoid an economically catastrophic default. Also weighing on prices was the increased possibility of another interest rate hike by the U.S. Federal Reserve. The strength of April U.S. economic data, in addition to optimism about the debt ceiling negotiations and the health of regional banking stocks overnight have strengthened market expectations of a further hike, ANZ Research said in a note on Thursday.

SummarySummary Companies Biden, McCarthy push forward towards deal on US debt ceilingU.S. rate hike prospect weighs on oil pricesMay 18 (Reuters) - Oil prices fell in early Asian trade on Thursday as traders warily watched for signs of progress on talks to raise the U.S. debt ceiling, after surging nearly 3% in the previous session on optimism over U.S. fuel demand. President Joe Biden and top U.S. congressional Republican Kevin McCarthy on Wednesday underscored their determination to reach a deal soon to raise the federal government's $31.4 trillion debt ceiling and avoid an economically catastrophic default. On Thursday, investors were "awaiting further evidence that a deal will happen soon," said Edward Moya, an analyst at OANDA. Also weighing on prices was the increased probability of an interest rate hike by the U.S. Federal Reserve. After a months-long standoff, Biden and McCarthy on Tuesday agreed to negotiate directly.

☆ Buy Charles Schwab shares to ride out potential summer volatility, Deutsche Bank says
▼ + stars: | 2023-05-18 | by ( Brian Evans | ) www.cnbc.com time to read: +1 min

Deutsche Bank thinks Charles Schwab stock is poised to break out in a more challenging market environment in the next three-to-six months. Analyst Brian Bedell also noted that Charles Schwab shares could get a boost once market volatility picks up. SCHW YTD mountain Shares of Charles Schwab have lost about 37% from the start of 2023. "After a lull in market volatility since March, we expect turbulence to resume this summer, assuming economic data weakens & markets increasingly debate recession timing and Fed policy," he wrote Thursday. Bedell also said that a slowdown in cash sorting will also help Schwab shares.

Walmart — Shares of the big box retailer rose slightly after the company reported an earnings and revenue beat for the fiscal first quarter. However, its adjusted earnings guidance for the fiscal second quarter came in lower than expectations. Bath & Body Works — The retailer's shares jumped more than 9% after its fiscal first quarter earnings topped expectations. Take-Two Interactive — Shares surged almost 13% and hit a new 52-week high following the company's earnings announcement Wednesday. To be sure, the company's guidance for bookings in the first-quarter and full-year fell below Wall Street's expectations.

☆ 2 of our consumer stocks are in the headlines. Here's what we think about the news
▼ + stars: | 2023-05-18 | by ( Paulina Likos | ) www.cnbc.com time to read: +5 min

Consumer stocks Constellation Brands (STZ) and Procter & Gamble (PG) were the subjects of Wall Street scrutiny Thursday. Analysts are concerned about the stock's valuation and the risk to the company's volumes as P & G raises prices on its products. If uncertainty over the health of U.S. banks persists, analysts believe, P & G stock will "likely hold up." But they added, "If the issue dies down, we expect investors to move into less risk-averse stocks." Truist also thinks "investors may be overreading" the consumer goods giant's better-than-expected fiscal third quarter in April.

☆ Stocks making the biggest moves premarket: Walmart, Take-Two Interactive, Bath & Body Works and more
▼ + stars: | 2023-05-18 | by ( Samantha Subin | ) www.cnbc.com time to read: +2 min

Sale signs inside the Bath and Body Works store in Edmonton. Walmart also reported stronger-than-expected adjusted earnings and revenue, according to Refinitiv. Take-Two Interactive Software — The video game company surged 14% after posting better-than-expected revenue for its fiscal fourth quarter. Bath & Body Works — The retailer of body care and fragrance saw its stock surge nearly 10% in premarket after the company posted stronger-than-expected earnings and revenue for the latest quarter. Bath & Body Works also raised its full-year earnings guidance.

☆ Oil prices ease on caution over U.S. debt ceiling talks
▼ + stars: | 2023-05-18 | by ( ) www.cnbc.com time to read: +1 min

Oil prices fell in early Asian trade on Thursday as traders warily watched for signs of progress on talks to raise the U.S. debt ceiling, after surging nearly 3% in the previous session on optimism over U.S. fuel demand. President Joe Biden and top U.S. congressional Republican Kevin McCarthy on Wednesday underscored their determination to reach a deal soon to raise the federal government's $31.4 trillion debt ceiling and avoid an economically catastrophic default. "Crude needs a clear signal that the U.S. economy will avoid economic catastrophe or that China's recovery is picking up steam," he said. Also weighing on prices was the increased probability of an interest rate hike by the U.S. Federal Reserve. The strength of April economic data in the U.S., in addition to improving optimism about the debt ceiling negotiations and the health of regional banking stocks overnight have strengthened market expectations of a further hike, ANZ Research said in a note on Thursday.

☆ Analysts say these 11 top-performing stocks are set to soar even more — giving one over 85% upside
▼ + stars: | 2023-05-18 | by ( Weizhen Tan | ) www.cnbc.com time to read: +2 min

The year is nearing its halfway mark, and global stocks have been doing much better than they had in volatile 2022. CNBC Pro screened for stocks that are beating the market nearly halfway into the year — and that analysts love. Only one stock had a 100% buy rating: Japan's Kansai Electric Power Company , a nuclear electric power generation firm. U.S. semiconductor firm Onsemi also made the screen, with analysts giving it 28% potential upside and a nearly 60% buy rating. Italian bank UniCredit had the highest potential upside in the list, at 85%, on top of a decent 88% buy rating.

☆ CNBC Daily Open: Farewell for now, default fears
▼ + stars: | 2023-05-18 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

Progress on U.S. debt ceiling talks and a sign of health at one regional bank gave markets the confidence to rally Wednesday. This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Progress on U.S. debt ceiling talks and a sign of health at one regional bank gave markets the confidence to rally Wednesday. PacWest, another regional bank, surged 21.7%, while the broader SPDR S&P Regional Banking ETF (KRE) rose 7.4%.

☆ CNBC Daily Open: Goodbye for now, default fears
▼ + stars: | 2023-05-18 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

Progress on U.S. debt ceiling talks and a sign of health at one regional bank gave markets the confidence to rally Wednesday. This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. PacWest, another regional bank, surged 21.7%, while the broader SPDR S&P Regional Banking ETF (KRE) rose 7.4%. Subscribe here to get this report sent directly to your inbox each morning before markets open.

May 17 (Reuters) - Shares of U.S. regional lenders jumped on Wednesday on growing investor confidence that the worst of the banking crisis was likely over, following news of strong deposit growth at Western Alliance Bancorp (WAL.N). Arthur Hogan, chief market strategist at B. Riley Wealth, said Western Alliance's deposit growth disclosure was good news for worried investors. "Western Alliance, one of the most hard-hit banks, came out with a filing showing deposit increase. Western Alliance shares, which are down 41% year-to-date, surged 10% to $34.81, erasing losses recorded over the last two weeks. Other regional lenders closed higher: PacWest Bancorp (PACW.O), whose stock has lost nearly 76% of its value year-to-date, spiked 22%.

Wall Street's main indexes climbed to session highs by early afternoon trading as shares of Tesla Inc (TSLA.O) extended gains to rise 3.9% after its annual shareholder meeting on Tuesday. U.S. regional banks rose, led by a 14.0% rise in Western Alliance Bancorp (WAL.N) as the lender's deposit growth exceeded $2 billion and brokerage Bank of America Global Research resumed coverage of the bank with a "buy" rating. The KBW Regional Banking Index (.KRX) jumped 5.4% after losing 1.8% in the previous session, while S&P 500 banks (.SPXBK) added 3.4%. The S&P 500 retail index (.SPXRT) rose 1.3%. The S&P index recorded 12 new 52-week highs and 14 new lows, while the Nasdaq recorded 46 new highs and 99 new lows.

Shares of U.S. regional banks rose, led by a 12.6% rise in Western Alliance Bancorp (WAL.N) as the lender's deposit growth exceeded $2 billion and brokerage Bank of America Global Research resumed coverage of the bank with a "buy" rating. The KBW Regional Banking Index (.KRX) rose 3.1% after losing 1.8% in the previous session, while S&P 500 banks (.SPXBK) added 2.4%. "Cautious optimism expressed from both President Biden and Speaker (Kevin) McCarthy about the progress of the debt talks has made people feel a little bit better," said Michael James, managing director of equity trading at Wedbush Securities. Retailers Target Corp(TGT.N) and TJX Companies Inc (TJX.N) forecast current-quarter profit below expectations despite beating estimates for the first quarter. Advancing issues outnumbered decliners by a 2.69-to-1 ratio on the NYSE and by a 1.39-to-1 ratio on the Nasdaq.

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