Stock futures were falling Monday after the UBS agreement to acquire Credit Suisse and moves by central banks to improve dollar liquidity failed to lift investors’ confidence in the global banking system.
These stocks were poised to make moves Monday:
American depositary receipts of Swiss bank
(CS) plunged more than 58% to about 84 cents after larger rival
(UBS) agreed to buy Credit Suisse in a deal valued at about $3.2 billion. The merger of Switzerland’s two largest banks—engineered over the weekend by Swiss authorities—comes against a backdrop of industry turmoil. U.S.-listed shares of UBS were down 7.4%.
First Republic Bank
(FRC) was falling 15.5% in premarket trading. The regional lender was downgraded deeper into junk territory by S&P Global. Last Wednesday, S&P Global cut the bank’s credit rating into speculative-grade territory. The stock has been tumbling as the collapse of Silicon Valley Bank and two other U.S banks has triggered concerns about the health of the U.S. banking system.
(JPM) and other big banks stepped in last week to shore up First Republic Bank to the tune of $30 billion.
Flagstar Bank, a subsidiary of
New York Community Bancorp
(NYCB), agreed on Sunday to acquire much of what was once Signature Bank. Starting Monday, Signature Bank’s 40 branches will operate under Flagstar Bank. Signature Bank collapsed just over a week ago, days after Silicon Valley Bank faced the same fate. Shares of New York Community Bancorp also were upgraded to Outperform from Market Perform at Keefe Bruyette. Shares were rising 10.7%.
(DELL) shares rose slightly in premarket trading after analysts at Goldman Sachs initiated coverage on the stock with a Buy recommendation. Both
Hewlett Packard Enterprise
(HPQ) were initiated at Neutral.
(ENPH), a maker of batteries used in solar systems, rose 1.3% after the stock was upgraded to Outperform from Market Perform at Raymond James.
(FL) is scheduled to report fiscal fourth-quarter earnings before the stock market opens Monday.
Earnings reports will be coming later in the week from companies such as
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