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☆ Treasury's Janet Yellen rains on Jay Powell's parade
▼ + stars: | 2023-03-23 | by ( Bob Pisani | ) www.cnbc.com time to read: +3 min

Federal Reserve Chairman Jerome Powell's press conference Wednesday threaded the needle almost perfectly. By the time Powell ended the press conference around 3:15 p.m. Both Yellen and Powell have been at great pains to say that deposits are safe, and by so doing are implying an implicit backstop for deposits. Powell, in his press conference, said "I think depositors should assume that their deposits are safe." But in her testimony Wednesday, Yellen said the Federal Deposit Insurance Corporation (FDIC) was not considering providing "blanket insurance" for all banking deposits.

☆ If you like big banks, there's an ETF for that.
▼ + stars: | 2023-03-22 | by ( Kevin Schmidt | ) www.cnbc.com time to read: +3 min

Roundhill Investments launched its new Big Bank ETF (BIGB) on Tuesday in response to the banking crisis. The fund includes no regional banks but holds equally weighted positions in six institutions: Bank of America , Citigroup , Goldman Sachs , JPMorgan Chase , Morgan Stanley and Wells Fargo . Comparably, the SPDR S&P Bank ETF (KBE) holds a 0.35% ratio. The launch of the ETF comes as larger banks are increasingly being seen as relative safe havens in the sector, while regional bank stocks remain volatile this week. "With these sector ETFs in general, and more concentrated ETFs, you really want to make sure you want to overweight them."

☆ Retail investors are buying the dip in financial stocks in unprecedented amounts
▼ + stars: | 2023-03-17 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Retail investors are buying financial stocks in unprecedented amounts after the sector's recent rout, according to Vanda Research. Banks have been pummeled in the wake of Silicon Valley Bank's collapse and concerns over Credit Suisse 's financial situation. Regional bank stocks were particularly hard hit as investors worried whether they had balance sheet issues similar to SVB. Some investors were also buying shares of First Republic Bank, PacWest Bancorp and Truist Financial . Retail investors bought nearly twice as much as the previous week's daily average, totally $1.43 billion in purchases, according to Vanda Research.

☆ Big changes in the S&P 500 Friday highlight the power of index providers
▼ + stars: | 2023-03-17 | by ( Bob Pisani | ) www.cnbc.com time to read: +6 min

Ever wonder why Walmart is classified as a consumer staples stock in the S&P 500, but similar retailers such as Target, Dollar General and Dollar Tree are classified as consumer discretionary stocks? Target, Dollar General and Dollar Tree will move from the consumer discretionary corner of the stock market, and join Walmart as consumer staples companies. Consumer staples will get bigger; consumer discretionary will get a little smaller. If you're an investor in a broadly diversified total market index fund like the S&P 500, the changes will make little difference to you. "Are they reflecting changes in consumer demand or the changes in the marketplace structure?"

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☆ 'Go-to place to get liquidity': ETF efficiency amid the SVB collapse
▼ + stars: | 2023-03-15 | by ( Kevin Schmidt | ) www.cnbc.com time to read: +2 min

"People look at the ETF as a price discovery tool." And because most of an underlying stock within a bank ETF does not actually trade, investors are able to access liquidity without having to trade individual companies. "And we find that the ETF is the go-to place to get liquidity and to see what the market expects." The SPDR S&P Bank ETF (KBE) has fallen nearly 24% since the start of last week, although volumes in the fund were among the highest ever recorded in its 18-year history. Draper said that the larger liquidity story remains strong, and that ETFs are a big driver of that story.

☆ SVB debacle sparks rush to defensive options on fears of contagion
▼ + stars: | 2023-03-10 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +3 min

A California regulator shut Silicon Valley Bank on Friday and appointed the Federal Deposit Insurance Corporation as receiver, according to the agency's statement. With many stocks in the sector falling sharply on Friday, traders rushed in to defensive bets. SVB is battling cash burn due to declining deposits from startups struggling with a venture capital funding drought. While investors had largely shrugged off Silvergate’s troubles as strictly crypto-related, "(SVB Financial Group) was a giant wake-up call about the effects of rising rates and an inverted yield curve," Sosnick said. Reporting by Saqib Iqbal Ahmed in New York Editing by Ira Iosebashvili and Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

☆ These under-the-radar bank stocks are among Wall Street’s favorites as earnings season begins
▼ + stars: | 2023-01-12 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Several big banks will kick off earnings season for the sector on Friday, yet it's the smaller, under-the-radar names that are most loved by Wall Street. For instance, only 54% of analysts covering Bank of America say the stock is a buy, while 58% of those covering JPMorgan rate it a buy, according to FactSet. To find bank stocks expected to outperform this year, CNBC Pro screened for the names most loved by analysts. They also have at least 8 analysts covering them. About 80% of the analysts covering the stock give it a buy rating, including Piper Sandler's John Barnidge.

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