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☆ Why the inflows? A 'two-sided equation' for bank ETFs
▼ + stars: | 2023-05-05 | by ( Kevin Schmidt | ) www.cnbc.com time to read: +2 min

"It's a two-sided equation here," Reggie Browne, principal of GTS, told Bob Pisani on CNBC's 'ETF Edge' on Monday. "If you look at the entire suite of regional bank ETFs, they're picking up assets." While regional bank ETFs continue to tumble, the funds still netted more than $105 million in inflows within the past month, according to FactSet. Flows were largely into the SPDR S&P Regional Banking ETF (KRE) , which pulled in $108 million during the same period. The dividend yield on the KRE stands at 3.84%, while the SPDR S&P Bank ETF (KBE) offers 3.59%.

☆ Oil ticks up, but set for third week of losses over demand concerns
▼ + stars: | 2023-05-05 | by ( ) www.cnbc.com time to read: +2 min

Oil prices rose slightly in Asian morning trade on Friday, but were set for a third straight week of losses after markets witnessed dramatic drops on fears of a weakening U.S. economy and slowing Chinese demand. For the week, Brent was set to close down 8.5%, while WTI was set to close 10.3% lower. "It has been a double whammy for oil prices," said Jun Rong Yeap, a market strategist at IG in Singapore. In China, factory activity unexpectedly contracted in April as orders fell and poor domestic demand dragged on the sprawling manufacturing sector. Service activity in China grew through April, though the rate of this expansion has slowed, data showed on Friday.

JPMorgan made a bold call on Friday, upgrading three regional banks despite a renewed rout in the sector this week that the investment bank says is partly due to short sellers. "To this end, we believe a sell-off in regional banks has become a catalyst itself to cause further fear and selling pressure." The SPDR S & P Regional Banking ETF , down 15% through Thursday this week, was up 4% in premarket trading Friday. The banks that JPMorgan upgraded have been hit even harder than the broader sector. The regional bank stocks have fallen despite the fact that the companies reported lower deposit outflows than First Republic.

☆ Jim Cramer gives his read on the banking sector as regional banks see slight rebound
▼ + stars: | 2023-05-05 | by ( Jim Cramer | ) www.cnbc.com time to read: 1 min

Jim Cramer gives his read on the banking sector as regional banks see slight rebound'Mad Money' host Jim Cramer talks the regional banking crisis and what he says needs to happen to buoy the sector.

☆ The stock market could become 'untouchable' if the regional banking crisis continues to spiral, Fundstrat says
▼ + stars: | 2023-05-05 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

The stock market could become "untouchable" if the regional banking crisis continues to spiral out of control. "This raises too many tail risk issues including credit tightening, commercial real estate, and wide economic implications," Lee said. Lee's cause for concern about the banking crisis and the chilling effect it could have on the stock market is based on the type of risks that could percolate if the instability continues. "This raises too many tail risk issues including credit tightening, commercial real estate and wide economic implications," Lee explained. The SPDR S&P Regional Banking ETF surged more than 6% on Friday, suggesting that the regional banking crisis could ultimately be contained without spilling over into a bigger problem for the stock market.

☆ Berkshire Hathaway's annual meeting is here: What to expect from Warren Buffett and Charlie Munger
▼ + stars: | 2023-05-05 | by ( Yun Li | ) www.cnbc.com time to read: +7 min

Warren Buffett is set to kick off Berkshire Hathaway 's annual shareholder meeting Saturday before tens of thousands of adoring shareholders. Berkshire's annual "Woodstock for Capitalists" will be held in Omaha, Nebraska, the second straight in-person gathering after two virtual meetings during the pandemic. The question of Buffett's Activision stake is expected to come up at the annual meeting. Geico Berkshire shareholders will also be eager to learn more about what's next for auto insurer Geico , the crown jewel of Berkshire's insurance empire and Buffett's "favorite child." ESG issues There are a few ESG-related shareholder proposals being put to a vote at the annual meeting, including requiring Berkshire to publish an annual assessment of climate-related risks and publish data on its workforce composition by gender, race, and ethnicity.

☆ Apple and fintechs like Robinhood chase yield-hungry depositors as Fed rate hikes continue
▼ + stars: | 2023-05-05 | by ( Rohan Goswami | In Rohangoswamicnbc | ) www.cnbc.com time to read: +9 min

Last month, the iPhone maker launched its Apple Card savings account with a generous 4.15% APY in partnership with Wall Street giant Goldman Sachs . "It's really a trade-off for consumers, between safety or the appearance of safety, and yield," Laplanche told CNBC. Still, the emerging group of high-yield savings products are much more mainstream than what the crypto platforms were promoting. SoFi launched its high-yield savings account in February of last year. In its annual SEC filing, the company said that offering checking and high-yield savings accounts provided "more daily interactions with our members."

☆ Fifth Third Bank CEO expects core deposit balances to be stable through year end
▼ + stars: | 2023-05-05 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFifth Third Bank CEO expects core deposit balances to be stable through year endFifth Third Bank CEO Timothy Spence joins 'Squawk on the Street' to discuss what he sees ahead in the financial sector after a heavy regional banking sell-off.

☆ Here are the 5 key takeaways from this year's Milken Global conference
▼ + stars: | 2023-05-05 | by ( Dakin Campbell | ) www.businessinsider.com time to read: +12 min

The pullback by banks is raising the hopes of those in the private credit industry. Some panelists and others who spoke in the hallways of the event suggested that there was a large-scale handoff from private equity to private credit. Many private-equity firms are scrambling to raise private credit funds to take advantage. "I don't think this is the end of private equity, but the environment certainly favors private credit," he said. And that will show up in lower returns for private credit funds, she said.

The Labor Department's report showed non-farm payrolls increased by 253,000 last month, higher than economists' expectations of 180,000. "This is a strong report and shows that the labor market is resilient. "It's been a tough week for the stock market, the regional banking problems have raised the fear factor, but Apple earnings came in strong. The S&P 500 has gained nearly 6% so far this year, while the S&P 500 Banks index (.SPXBK) and KBW Regional Banking index (.KRX) have lost 17% and 31%, respectively. ET, Dow e-minis were up 222 points, or 0.67%, S&P 500 e-minis were up 33.5 points, or 0.82%, and Nasdaq 100 e-minis were up 87 points, or 0.67%.

Observers often disagree at the time whether the economy is already in recession, and sometimes afterwards whether a recession has occurred or just a “soft patch” in an otherwise uninterrupted business cycle expansion. But the same surveys show the much larger service sector still reporting marginal growth, keeping the economy as a whole out of recession so far. Chartbook: U.S. economic indicatorsThe Institute for Supply Management's (ISM) service sector index stood at 51.9 in April (with more businesses reporting expanding activity than contraction) compared with a manufacturing sector index of just 47.1. In April, the ISM services index was in only the 15th percentile for all months since 1997 compared with the manufacturing index in only the 9th percentile. If the manufacturing sector has already fallen into recession, the services sector is only just avoiding it at the moment.

☆ The top commentators in markets say the bank crisis isn't anywhere close to over.
▼ + stars: | 2023-05-05 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

Today we're looking at what some of Wall Street's top investors and commentators say has to happen to curb the banking tumult. The shuttered bank had disclosed in its first-quarter earnings report that customers pulled over $100 billion of deposits in three-months. But even if the regulator did insure more money, former FDIC chair Jelena McWilliams said Thursday a move like that would only cost banks' customers more. A stock market portfolio created by ChatGPT is outperforming the top UK investment funds. Stock market investors should keep an eye out for five key indicators with volatility set to ramp up through the end of the year.

☆ The dollar's bad run will continue as the Fed gears up to pause its rate-hiking campaign, UBS says
▼ + stars: | 2023-05-05 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The dollar's weakening trend that started in late September is likely to continue, according to UBS. The prospect of Federal Reserve halting interest-rate increases will likely weigh on the greenback, strategists said. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. Its miserable run will likely continue as the Federal Reserve looks set to halt its interest-rate increases and given the risk of a banking crisis, according to UBS. UBS warned that a slowdown in US economic growth is also likely to weigh on the buck.

☆ Former Fed Vice Chair Richard Clarida says Fed made 'the right move' raising rates again
▼ + stars: | 2023-05-05 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFormer Fed Vice Chair Richard Clarida says Fed made 'the right move' raising rates againFormer Federal Reserve Vice Chair and PIMCO Global Economic Advisor Richard Clarida joins 'Closing Bell' to give his take on the Fed's latest rate hike, the regional banking sector, and what the central bank's next move might be.

☆ Regional bank stocks could be a market afterthought in the week ahead
▼ + stars: | 2023-05-05 | by ( Scott Schnipper | ) www.cnbc.com time to read: +7 min

For the immediate economic and earnings and growth outlook, it almost seems irrelevant whether regional bank stocks rally, steady or sell off more next week. Regional banks were top of mind for investors this past week, as First Republic failed , the SPDR S & P Regional Banking ETF tumbled more than 10% — twice the five-day loss in the S & P 500 Energy Index, the hardest hit S & P sector — and lenders such as PacWest Bancorp and Western Alliance Bancorp lost billions in market value. And, for all that, the S & P 500 only fell about 0.75% this week. Now the conventional wisdom on Wall Street is that regardless of how the regional bank stocks trade, it's a given that bank lending officers are going to pull in their horns and risk management desks will grow more risk averse. But stocks still face a host of issues, none of which are going away next week.

☆ Cassidy: The fundamentals of the core regional banks are healthy and good
▼ + stars: | 2023-05-05 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCassidy: The fundamentals of the core regional banks are healthy and goodRBC's Gerard Cassidy weighs in on the turmoil in the regional banking sector, and whether it's negative sentiment or more fundamental problems that are weighing on the shares of these lenders.

May 4 (Reuters) - Canadian lender Toronto-Dominion Bank Group (TD.TO) has called off its deal to acquire First Horizon Corp (FHN.N) for $13.4 billion on Thursday, sending the U.S. bank's shares down 44.5% in premarket trading. As part of the termination, TD will pay $200 million to First Horizon in addition to a $25 million fee reimbursement, the banks said. TD first agreed to buy First Horizon in February last year to expand its presence in the United States. Since then, the lender has acquired New York-based boutique investment bank Cowen Inc for $1.3 billion this year. ORTEX data from early last month showed the second-largest Canadian lender was the world's most shorted banking stock.

May 3 (Reuters) - PacWest Bancorp (PACW.O) is exploring strategic options including a sale or capital raising, a source familiar with the matter said, sending the shares of the bank and several other U.S. regional lenders tumbling in after-market trading. The Phoenix-based regional lender said it was "reaffirming its financial strength as well as its deposit growth guidance in response to recent industry events." PacWest stock has lost almost 90% of its value since the regional banking crisis started on March 8. Zion Bancorp (ZION.O), First Horizon (FHN.N) and Comerica (CMA.N) each slumped more than 7% and the SPDR S&P Regional Banking ETF (KRE.P) dropped 5%. The cost of insuring against further losses in regional U.S. bank stocks stood on Wednesday near a one-month high in options markets.

☆ Stock markets nervous about Fed pivot and banking sector
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +4 min

"The Fed decision was widely expected, so it didn't provide much of a shock to financial markets," Tina Teng, market analyst at CMC Markets, in Auckland. "However, I think the whole economic playout is not positive, especially the recent banking rout from the regional banks, and those big banks taking over the smaller banks. It's not a good sign, and risks are spreading out into the wider banking system, which worries investors." E-mini futures for the S&P 500 fell 0.22%, reflecting the dramatic slide in regional banking shares after the close of U.S. markets. The Fed is trying to indicate a direction, and the market is looking further down the path than the Fed's willing to communicate."

As each domino falls, the next weakest bank begins to wobble," billionaire investor Bill Ackman wrote in a tweet. PacWest stock has lost almost 90% of its value since the regional banking crisis started on March 8. Zion Bancorporation (ZION.O), Comerica (CMA.N) and First Horizon (FHN.N) each slumped more than 7% and the SPDR S&P Regional Banking ETF (KRE.P) dropped 5%. The cost of insuring against further losses in regional U.S. bank stocks stood on Wednesday near a one-month high in options markets. On Wednesday a source said the lender was looking at options that include a potential sale or capital raise.

☆ PacWest tumbles on weighing options, other U.S. regional bank stocks fall
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +2 min

May 4 (Reuters) - Shares of U.S. regional banks fell premarket on Thursday, hurt by a 37% slump in PacWest Bancorp (PACW.O) after its announcement about exploring strategic options spurred market concerns of a worsening banking crisis. Zion Bancorporation (ZION.O), KeyCorp (KEY.N), Valley National Bancorp (VLY.O), Comerica (CMA.N) and First Horizon (FHN.N) dropped between 2% and 6%. The SPDR S&P Regional Banking ETF (KRE.P) shed 2.8%. The slide in shares of PacWest and its peers highlights uncertainty around the health of regional banks despite regulatory efforts to call an end to the banking crisis that started with the collapse of Silicon Valley Bank and Signature Bank in March. PacWest Bancorp reported a loss of $1.1 billion attributed to shareholders for the first quarter of the year.

☆ Elite investors and fund managers at the legendary Milken conference warn of a recession and credit crunch
▼ + stars: | 2023-05-04 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

Elite money managers overseeing trillions of dollars convened at the 2023 Milken Global Conference in Los Angeles this week. The consensus was clear: they think markets are mispositioned for a scenario where the central bank keeps rates higher for longer. "As our chief economist likes to say," Hunt said, "at higher rates, bodies will continue to float to the top over the course of the summer." And with yet another Fed rate hike officially in the books, financial conditions are only going to get tighter and more companies could be caught off-guard. On Wednesday, West Texas crude dropped more than 4.4%, the steep declines coming the same day as the Fed's rate hike.

☆ Cathie Wood says the credit crunch is going to get much more serious than most are expecting
▼ + stars: | 2023-05-04 | by ( Brian Evans | ) www.cnbc.com time to read: +1 min

Cathie Wood thinks a credit crunch is underway, and it's going to get much worse from here. The Ark Invest chief told TD Wealth on Wednesday that customer deposits are still leaving regional banks and going into Treasury funds, limiting the ability for banks to potentially produce loans in the future. So, "we have a feeling that we've started in the early stages of a credit crunch that is going to be much more serious than I think most are expecting." Wood cited the downward trajectory of the SPDR S & P Regional Banking ETF ( KRE ) as a basis to forecast a continued deposit outflows from regional banks. On Thursday, European Central Bank chief Christine Lagarde said tighter credit conditions would similarly weaken further bank lending.

☆ Watch CNBC's full interview with Tom Lee and Robert Greifield
▼ + stars: | 2023-05-04 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Tom Lee and Robert GreifieldTom Lee, Fundstrat managing partner, and Robert Greifield, Virtu Financial chairman and former Nasdaq CEO, join 'Last Call' to discuss the regional banking crisis and what it means for all Americans.

☆ Analysts warn regional banks stocks are in a 'negative feedback loop' and detached from fundamentals
▼ + stars: | 2023-05-04 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +3 min

The latest drop for regional bank shares is causing some Wall Street analysts to back away from their recommendations on the stocks, even if they still believe in the underlying fundamentals for the companies. Other regional banks also sold off, including a 19% drop for Western Alliance. The deposit update was not enough to reassure all Wall Street analysts about the health of regional banks, and there is concern that the drops in the stocks could reignite deposit flight. Meanwhile, RBC Capital Markets' analyst Jon Arfstrom stuck with his outperform rating on PacWest, but said only investors with strong stomachs should stick around. Western Alliance Another bank stock that has taken heavy loses in recent weeks is Western Alliance .

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