Stocks trade higher at the open, regional bank stocks rebound
Yahoo Finance Live’s Brad Smith breaks down how stocks are moving following the opening bell on Tuesday.
BRAD SMITH: The Yahoo Finance's interactive hasn't run away from me yet. So here we are at the open. The Dow Jones Industrial Average-- we'll put this on a chart view for you and give you, perhaps, the past two days, once it toggles over. Dow Jones Industrial Average holding up by about 1% out of the gate here. Past two days, net positive by a little more than 2%.
NASDAQ Composite, you're seeing the tech-heavy average up right now by 9/10 of a percent to start off today's activity. Past two days? Yep, positive. You guessed it. 1 and 1/4% there.
And over the past two days for the S&P 500, early in this week, you're seeing it up by nearly 2%. 1.9% to be exact there. 1% added here early in today's activity.
We're gonna take a look at the sectors. And then we'll get to some of those regional banks that were aforementioned. The 11 S&P 500 sectors here, pulled up for you live in living color on your screen. We just had utilities flip barely into positive territory by the hair on its chinny-chin-chin. And that gives us all 11 S&P 500 sectors in positive territory. But now it's back in the red. All right, so you messed up my little flow there, utilities. But that's OK, we'll come back to you. Energy leading the charge. That's up by about 2.6%.
We promised you some regional banks we'll give you some regional banks taking a look at some of those regionals. You've got green across the screen and a broader rebound taking place here on the day. Let's take a look to see if we can find First Republic. Yeah, oh my goodness.
Yeah, the biggest mover to the upside on the regional banks. But of course, because it was one of the biggest decliners yesterday there. You're taking a look at the past two days. Still, net lower by 32% over the past two days. However, here out of the gate this morning, it is up by--
JULIE HYMAN: Well, I mean, year-to-date as well.
BRAD SMITH: --27%. Yeah, year-to-date. I'll pull that up for you, as well here. Year-to-date for-- oh my goodness, yeah for some of those regionals.
JULIE HYMAN: 87%.
BRAD SMITH: Yeah. And of course, the beleaguered Signature and then, additionally, of course, you saw Silicon Valley Bank also which is just you know, it is where it is right now.
JULIE HYMAN: Yeah, it's not anywhere right now I think is the bottom line with that. I mean, if you go back to today's session, though, in the intraday, it is interesting because we do have these reports now that JPMorgan is, once again, trying to spearhead some kind of effort, continuing effort, ongoing effort. You have that in combination with the Janet Yellen comments that the Fed is ready to help small banks in particular.
And you have reports that the FDIC or legislators are considering pushing up the insurance limit for FDIC-insured deposits above $250,000. It seems like all of that, perhaps, that concerted effort maybe has stopped the selling in First Republic.
And just to be clear, when we talk about First Republic, we're talking about two different things here. We're talking about the market perception of the soundness of the bank on the one hand, which is represented by the stock price. And then we're talking about the deposits, right? We have reporting that there is-- are deposit outflows from the bank, right? But just to recognize there are two separate things.
And this is something that was important, for example, to Credit Suisse. There's the soundness of the bank itself, on the one hand. And then there is also the perception of the soundness of the bank, which sometimes is a very different situation.
BRAD SMITH: And it sounds like other banks are believing that there is not a soundness of the bank at least right now, which is why you have some representatives from JPMorgan trying to work with the bank and give them a little bit more of the options that could be on the table. Investment bankers hired and looking to advise First Republic on some of what those options might look like in the future, according to some reports.
And then additionally here, the capital injection, it sounds like, could be more-- or at least the deposits that have been put forward by the consortium of banks, that could move into a capital injection. That is one of the options that they are also weighing as of right now here. So even as we're keeping an eye on First Republic Bank here today, which is up by about 28%, 29%, as we were mentioning here-- or 25% now, it comes as all of the regional banks are seeing this kind of broader attempt to bounce back in the face of lower sentiment that we've seen over the past few weeks.
JULIE HYMAN: And the big banks, as well. We have been seeing some recoveries there. I mean, it's interesting to see that gain across the board. I think we have-- oh, UBS there is up some 7%. You know, we talked a little bit about this yesterday. It was down and then it went higher. And you had mentioned, you know, usually you see the acquirer go down. The acquirer usually goes down, in part, because people think they're paying too much for it, which is not probably the case for UBS buying Credit Suisse. So it's up for the second straight day.
BRAD SMITH: Yeah, it is a steal. And because of how beleaguered and the panic that really ensued in order just to make sure that Credit Suisse was able to have some type of buoy, but now, of course, the buoy and UBS and what they're acquiring here, it's the sunsetting of certain divisions at least in the kind of integration of that business and what that could look like.
And of course, the extreme depression of their actual valuation coming in to that deal, too. So UBS, they certainly got quite the acquisition that they were able to bring on. It's just about what that trimming looks like once they start to really integrate the two businesses, as well.