Charles Schwab stock drops following Morgan Stanley downgrade

The Yahoo Finance Live team discusses the latest movement in Charles Schwab stock.

Video Transcript

- And let's take a look at shares of Charles Schwab. That stock closing lower today as Morgan Stanley downgrades the bank for the first time ever. Morgan Stanley expects more pressure on Schwab's earnings than initially expected. And you can see shares down about 5%.

SEANA SMITH: Yeah, David, I think deposit flows, they are really going to be in the limelight, front and center, when we take a look at a lot of these regional banks when they report here over the coming weeks, when we look ahead to next quarter. You take a look at some of the deposits that have been pulled from regional banks, and we've seen some of the concern ripple throughout the sector here.

Schwab was far from the only regional bank play under pressure today. We were also looking at losses from First Republic, Piper Sandler. The analyst there that covers the regional banks, he lowered his price target on nearly every bank that he covers. So really pointing to the fact that there's lots of questions out there about what the future holds here for some of these regional plays.