Marcus Today Pre-Market Podcast – Friday 5th May
US equities closed lower overnight in Thursday trading. Regional banks under immense pressure closing sharply lower amid renewed crisis fears. Heavyweight US bank stocks fall on regional bank woes, Goldman -4.25%, Bank of America -3.12%, and JPMorgan -1.69%. Global equities down broadly after the ECB raised interest rates by 25bps and signalled more tightening would be needed to reign in inflation. US treasuries lower while Brent crude oil prices stabilise after three consecutive days of sharp declines over demand concerns. Apple fell 1% leading up to the release of its quarterly results before rising ~2% in after-hours trade after its forecasts. Dow Jones down 287 points (-0.86%). Dow at worst down 477. S&P 500 down 0.72%. NASDAQ down 0.49%. VIX Volatility Index up 0.24%. European markets down. Stoxx 50 -0.5%, FTSE -1.1%, CAC -0.9%, and DAX -0.5%. SPI Futures are down 29 points (-0.40%).
Shares of PacWest Bancorp plummeted by more than 40% dropping to a record low after confirming reports that it was exploring strategic options, including a potential sale or capital raising. Western Alliance also saw its stock drop 60%, after a report claiming it was exploring strategic options including a potential sale, the claims were denied by the bank, shares down 38%. First Horizon and Toronto-Dominion Bank Group terminated their $13.4bn merger due to uncertainty over regulatory approvals. The news caused First Horizon shares to drop by 32%. S&P 500 Banks index fell nearly 3% and the KBW Regional Banking Index dropped 3.3%.
Catch up on the latest news with Henry Jennings’ Pre-Market Podcast.
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