Swiss bank Credit Suisse (ticker: CS ) U.S. depositary receipts fell more than 58% to around 83 cents after larger rival UBS ( UBS ) agreed to buy Credit Suisse in a deal worth about $3.2 billion. The merger of Switzerland’s two biggest banks – hammered out by Swiss authorities over the weekend – comes against a backdrop of industry turmoil. U.S.-listed shares of UBS fell 3.4%.
First Republic Bank (FRC) fell 16.2% in premarket trading. The regional lender was downgraded deep into junk territory by S&P Global. Last Wednesday, S&P Global downgraded the bank’s credit rating to speculative-grade territory. Stocks are falling as the collapse of Silicon Valley Bank and two other US banks stoked concerns about the health of the US banking system. JPMorgan Chase ( JPM ) and other big banks last week tried to raise First Republic Bank for $30 billion.
Flagstar Bank, a subsidiary of New York Community Bancorp (NYCB), agreed on Sunday to buy what was once Signature Bank. From Monday, 40 branches of Signature Bank will operate under Flagstar Bank. Signature Bank collapsed a week ago, days after Silicon Valley Bank faced the same fate. New York Community Bancorp shares also outperformed the market at Keefe Pruett. Shares rose 23.1%.
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Dell Technologies ( DELL ) shares rose slightly in premarket trading after analysts at Goldman Sachs initiated coverage on the stock with a buy recommendation. Hewlett Packard Enterprise (HPE) and HP Inc. (HPQ) both started in neutral.
Enphase Energy ( ENPH ), a maker of cells used in solar systems, rose 1.2% after the stock was upgraded to outperform at Raymond James.
Shares of Foot Locker ( FL ) rose 0.6%, even after the shoe retailer posted a disappointing forecast for 2023.
American Depositary Receipts of PDD Holdings or Pinduoduo
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( PDD ), the Chinese e-commerce giant fell 10.5% in premarket trade after posting fiscal fourth-quarter earnings that missed analysts’ expectations.
Earnings reports from companies such as Nike ( NKE ), GameStop ( GME ), Chevy ( CHWY ), KB Home ( KPH ) and General Mills ( GIS ) are due later in the week.
Write to Joe Woelfel at [email protected]
