Taiwan Semiconductor Manufacturing Company (TSM) — or TSMC — shares are rising at the market open after it reported that its revenue will be increasing up to 20% year-over-year.
Regional banks are continuing to decline as banks' net interest income drops. Discover Financial Services (DFS) is a standout as the company's net interest income is down 62% year-over-year. Compliance issues and shake-ups in the C-suite continue to weigh heavily on the company.
Yahoo Finance Reporter Madison Mills reports live from the New York Stock Exchange to break down the latest developments for these companies.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Nicholas Jacobino
Video Transcript
MADISON MILLS: My source is here on the floor telling me this morning that we have TSMC to thank for turning this week of decliners around a little bit. This TSMC report showing that revenue is going to be increasing by up to 20% year over year. That comes after TSMC was struggling with a couple of years of decliners on their balance sheet, now seeing a little bit of a bounce back moving forward.
And as you mentioned, Seana, that's not just good news for TSMC. It's a rising tide lifting all ships. We're seeing positive movement in Nvidia and AMD this morning. The Sox Index which tracks the semiconductor names also in the green here following that TSMC report. And I also want to mention that Apple upgrade you talked about earlier. Apple also going up on this TSMC news because Apple is TSMC's biggest client. If TSMC is expecting increased revenue, that could be a boon for Apple moving forward.
Now, in a little bit less rosy news. I do want to talk about the regional struggling with the same things that the larger banks are struggling with this week, and really since the collapse of Silicon Valley Bank and the run up in interest rates weighing on these balance sheets for these regional banks.
But I want to zero in specifically on Discover because this is the top trending ticker on the Yahoo Finance platform. This name down a little bit over 6%. Last time I checked this morning, it's about net interest income for all of these banks. And Discover's net interest income down 62% year over year. If that wasn't bad enough, their forward guidance also showing a decline of about 10%, depending on the interest rate outlook. So again, hearing that renewed call about what the interest rate outlook is going to look like.
Now, this comes after compliance issues weighing on Discover's balance sheet, also shakeups in the c-suite. And I want to pull out a quote from their interim CEO who talked about those compliance issues, saying, "We've taken steps to strengthen our risk management and compliance issues, but those steps are not enough to lift this name today."
