Tuesday’s top stories: Capitol Hill banking hearing, Alibaba’s business split, Lululemon’s earnings
The Yahoo Finance Live team breaks down the top finance stories from Tuesday.
SEANA SMITH: All right, well, it is closing time here at Yahoo Finance. Let's recap some of the biggest stories of the day.
First up, banking regulators were grilled by the Senate Banking Committee about the failures of Silicon Valley and Signature banks. Among the things that we learned from the hearing was just how bad the run on Silicon Valley Bank was. Michael Barr, the vice chair for supervision at the Federal Reserve, telling lawmakers that SVB was expecting $100 billion worth of deposits to be withdrawn on the Friday that the bank was shut down by regulators.
DAVE BRIGGS: Chinese tech giant Alibaba will be splitting into six separate individually run companies. The groups will be the domestic and international e-commerce businesses, the cloud business, the local services group, logistics group, and the entertainment group. Alibaba says the split will allow the company to be more nimble. Investors cheering the move with shares closing 14% higher.
SEANA SMITH: And finally a big earnings beat for Lululemon. The retailer reporting earnings of $4.40 a share on revenue that was better than expected, $2.8 billion, both of which beating the Street's expectations. Now, the company's guidance was also better than expected. However, inventories did increase by 50%, although not as high as what the Street was bracing itself for. The results propelling the stock higher, up more than 10%-- look at that, 11% higher in extended trading.