Movers & Shakers: First Republic leads big rally in regional banks, while United Airlines dips on profit warning
Movers & Shakers
Boeing, Meta, Spirit Airlines and Rite Aid are also on the move
Here are some of the biggest movers on Tuesday with a big rally in banks recently badly hit following the failure of Silicon Valley Bank and Signature Bank.
- First Republic Bank shares FRC, +56.49% are bouncing 53% to lead S&P 500 gainers, as buyers return to regional banks that were so badly hit by selling after federal regulators stepped into protect deposits at fallen bank SVB. FRB stock by Monday’s close had fallen 74% for the year-to-date.
- Other regional banks in rally mode include Pacific West PACW, +56.37%, up 33%; Western Alliance WAL, +47.05%, adding 27%; KeyCorp KEY, +15.42%, gaining 13%; and Zions ZION, +16.58%, advancing 14%. The broad rebound comes after KBW recommended buying a batch of financials in a Monday note.
- Charles Schwab SCHW, +9.37% is up 9% after Deutsche Bank said fears of liquidity risks are overblown and reiterated a ‘buy’ on the broker’s shares.
- The big money-center banks were also higher after a slump on Monday, even amid reports deposits were headed toward the too-big-to-fail systemically important financial institutions. JPMorgan Chase & Co. JPM, +1.00% is up 1.1%, Citigroup C, +6.50% is up 5.5% and Bank of America BAC, +1.49% is up 1.8%. Wells Fargo & Co. WFC, +4.59% is up 4.6%.
- Boeing Co.’s stock BA, +4.99% was up 3.9%, after the company completed two deals with Saudi Arabia to manufacture up to 121 Boeing 787 Dreamliner aircraft equipped with General Electric GE, +4.39% GEnex engines, the White House said Tuesday in a statement. The deals with Saudi Arabia, one to anchor a new airline and another to expand an existing fleet, are worth nearly $37 billion, according to the White House.
- Meta Platforms Inc.’s stock META, +5.77% rose 5% after the Facebook parent company announced plans to lay off 10,000 more employees. In November, it announced plans to slash more than 11,000 jobs in an initial round of cuts.
- Rite Aid Corp. ‘s stock RAD, +1.88% was up 1.4%, shrugging off a Justice Department complaint alleging that the drugstore chain fueled the nation’s opioid crisis for several years by knowingly filling hundreds of thousands of illegal prescriptions for drugs like oxycodone and fentanyl.
- Southwest Airlines Co.’s stock LUV, +1.29% was up 1.8% after it unveiled a three-part Tactical Action Plan that aims to booster operational resiliency across the company, and avoid the staffing issues that led it to cancel thousands of flights during last year’s Winter Storm Eliot.
- Univar Solutions UNVR, +12.40% is jumping 12% after news the chemical company is being acquired by Apollo Global Management Inc. APO, +4.07% for $8.1 billion, or $36.15 a share.
- Bunge shares BG, +14.14% are up 8% after it was announced the agricultural supply company would replace Signature Bank in the S&P 500.
- United Airlines shares UAL, -4.74% are down 4% to lead S&P 500 decliners, after the airline surprised Wall Street by guiding for a loss in its first quarter, saying it saw lower-than-expected demand in January and February and continued to feel the pinch of high fuel prices.
- Spirit Airlines Inc. SAVE, +1.96% also fell after it raised its guidance for first-quarter operating costs to reflect higher fuel prices and said capacity would be about a half percentage point lower than previously expected.
- Credit Suisse shares CS, -1.96% are again under pressure after the beleaguered bank released its delayed annual report and admitted to financial control weaknesses.
- BuzzFeed Inc.’s stock BZFD, -14.06% was down 10% after the media company said most of its cash of about $56 million was at Silicon Valley Bank. It also expects first-quarter revenue between $61 million and $67 million below the FactSet consensus of $83.6 million.