34 minutes ago
Apple refuses to turn around; touched the 6-month high on Thursday
Just before noon Thursday, Apple hit $161.55 a share, its highest level in six months since mid-September.
It’s easy to argue, “As Apple goes, so goes the market.” Apple’s market value outperforms the S&P 500 at $2.51 trillion, more than 21% above second-largest Microsoft ($2.06 trillion). Apple is now trading 7% above its 50-day moving average of $148.34 and its 200-day moving average of $147.88, a sign of momentum that analysts who focus exclusively on price charts like to see .
While the financial sector suffered in March, Apple is up almost 8% this month, bringing its year-to-date gain to almost 22% — ahead of Alphabet (19%), Amazon (16%), Microsoft (15%). , Analog Devices (15%) or NXP Semi (14%).
Bernstein analyst Toni Sacconaghi published a research note on Tuesday speculating about what Berkshire Hathaway CEO Warren Buffett likes about Apple, a stock he’s owned since 2016: that has allowed the company to invest in product expansions expand and build a high-margin service business.”
Berkshire is Apple’s second-largest shareholder with a 5.66% stake, ahead of Blackrock and behind only Vanguard.
— Scott Schnipper, Michael Bloom
51 minutes ago
Treasury Secretary Yellen says emergency measures to support banks could be reinstated if needed
Treasury Secretary Janet Yellen said Thursday that federal emergency measures that halted customers at Silicon Valley Bank and Signature Bank could be reinstated if necessary.
“We have used important tools to act quickly and prevent contagion. And they are tools that we could use again,” Yellen said in written testimony before a budget subcommittee.
“The strong measures we have taken ensure that Americans’ deposits are safe,” she added. “Of course we would be prepared to take additional measures if warranted.”
Her comments come as regulators aimed to reassure customers and investors amid the banking crisis fostered by the shutdown of Silicon Valley Bank.
– Alex Harring, Christina Wilkie
Before an hour
Cryptocurrency prices rally Thursday afternoon
Cryptocurrency prices soared on Thursday as investors grew optimistic that the Federal Reserve’s rate-hiking campaign would soon come to an end. Wall Street also shed some of its fears about the ongoing crisis in the banking system.
Bitcoin’s price surged more than 4% to $28,290.71, according to Coin Metrics. Ether gained nearly 5% to trade at $1,822.50.
Crypto rose with other risky assets. All three major stock indices were higher the day after their Fed-induced sell-off in the previous session.
Watch the full story here.
– Tanaya Macheel, Hakyung Kim
Before an hour
Regional banks continue to slide
Regional banks slid Thursday, building on Wednesday’s sell-off as investors continued to speculate on the health of the US banking system.
The SPDR S&P Regional Bank ETF (KRE) fell 7.7% on Thursday after falling 5.7% on Wednesday.
PacWest Bancorp was the worst performer on the ETF on Thursday, falling 10.1%. Shares fell 17.1% on Wednesday.
The closely followed First Republic was also at the bottom, slipping 8.3% in Thursday’s session. The stock ended Wednesday’s session down 15.5%.
But some regional bank stocks managed to escape Thursday’s slide. Popular was up 2%, while First Horizon and Triumph were each up more than 1%. All three are on their way to end the week.
See grafic…
The KRE, PacWest and the First Republic
Before an hour
Energy is the biggest laggard in the S&P 500
See grafic…
S&P 500 Energy Sector 1 Day
2 hours ago
Stocks making the biggest premarket moves
Here are some of the names making the biggest moves at midday:
- Netflix — The stock rose 7.8% after a report from YipitData said the streaming giant’s gross additions in Canada improved. YipitData was not immediately available for comment.
- Meta platforms, Snap — Facebook parent Meta rose 3%, while Snap was up 2.5%, TikTok CEO Shou Zi Chew testified before the House Energy and Commerce Committee. The company faces a possible ban in the US over privacy concerns.
- Regeneron Pharmaceuticals, Sanofi — Regeneron and Sanofi both rose more than 6% after Dupixent, the companies’ co-developed asthma drug, met all targets in its study aimed at treating chronic obstructive pulmonary disease (COPD).
To see more companies making moves during midday trading, read the full story here.
– Michelle Fox
2 hours ago
Powell and Yellen are giving conflicting messages to markets, says LPL Financial
LPL Financial’s chief global strategist Quincy Krosby says that while the Federal Reserve’s announcement on Wednesday was in line with expectations, Treasury Secretary Janet Yellen’s separate comments on the same day differed from the central bank’s messages.
“While investors and traders alike focused on Jerome Powell’s comments during the press conference, and were somewhat taken aback that in almost every response he consistently returned to increasing the Fed’s ‘price stability’ mandate, while reassuring markets that the banking system is resilient and strong. But he also indicated that all depositors are/would be safe,” Krosby said.
Krosby said Janet Yellen’s comments Wednesday afternoon went against her earlier assurances to the banking sector, as well as Powell’s attempts to quell concerns about contagion.
“Janet Yellen was at another meeting and said something that contradicted what she had previously stated in relation to protecting all depositors. At 3:00pm ET the market started the downtrend as she made a full 180 and said it would depend again suggesting that not all banks are considered important and not all depositors will recover in the event of a run would,” added Krosby.
“The contradictions between Powell’s and Yellen’s comments were confusing for markets, but Yellen’s comments were seen as a backtrack on their commitment to protecting small banks and their depositors in the event of a panic, which is the main source of contagion.” She continued.
“The last thing markets need right now is confusion and a departure from their top government officials, but that’s exactly what happened. Markets are in oversold territory today and poised for a potential bounce, and that could offer relief from a sell-off caused by careless words from a top official.”
— Hakyung Kim
2 hours ago
Markets are more focused on the banking crisis than rate hikes, says Commonwealth’s McMillan
Wall Street has shifted its focus from the Federal Reserve’s rate hikes to the banking crisis, said Brad McMillan, chief investment officer at the Commonwealth Financial Network.
McMillan said the market “shrugged” at the 25 basis point rate hike announced on Wednesday because it was already expected. Though the market rallied somewhat during Chairman Jerome Powell’s press briefing, McMillan said stocks remained largely quiet, which he sees as a sign that Wall Street has shifted attention from rate hikes to financial sector woes.
“The Fed isn’t what the markets are worried about anymore, nor is it a recession,” McMillan said. “What the markets are worried about now is a financial crisis.”
He said the shift in focus was “interesting” as the whole banking system “still works as it should”. During his news conference, Powell said deposit flows at banks had stabilized over the past week and that Silicon Valley Bank’s weaknesses did not reflect larger challenges facing the industry.
– Alex Harring
3 hours ago
Charles Schwab’s Liz Ann Sonders says she’s beginning to see “the aftermath of the end of easy money.”
Liz Ann Sonders, Charles Schwab’s chief investment strategist, says economic volatility over the past few weeks is revealing the impact of years of near-zero interest rates.
“What we’re starting to see here is the aftermath of the end of easy money,” Sonders said.
“[We] not only had the Fed’s most aggressive tightening cycle in 40 years, but started with zero interest rates and a $9 trillion balance sheet, [and an] almost constant era of near-zero interest rates since the global financial crisis. That was the backdrop to a massive surge in bubble startups and nonprofits, and there was a misallocation of capital,” Saunders continued.
Sonders said weaknesses are limited not only in the banking sector but in the overall business environment.
“It hasn’t been possible to do any sort of pricing and I think we’re just getting started. It’s not just banks, it’s companies and startups,” added the investment strategist.
“In an environment with lots of liquidity and really low interest rates and low credit spreads, they could fund themselves, they could hire a lot of people and that was the environment, that environment is gone. So this is more than just a situation related to banks. That’s more comprehensive.”
She quoted Warren Buffett’s famous quote: “When the liquidity tide subsides, you finally see who swam naked.”
“I think there are nude swimmers going beyond the banking system and we are only at the beginning of that process. And that’s not a bad thing, by the way. Weaker companies should not be kept afloat Year after year we have stifled the natural forces of the cycle by keeping interest rates at zero for so long. And now we see the consequences of that. That, I think, is the important, broader message.”
— Hakyung Kim
4 hours ago
AMC stock is still overvalued, says Citi
According to Citi analyst Jason Bazinet, a solid start to the year for the US film business does not yet justify AMC Entertainment’s share price.
“Although we suspect AMC may be able to deleverage as the US box office recovers and through issuance of stock, we believe AMC’s common stock is overvalued
prevailing levels,” Bazinet said in a note to customers.
Having previously suspended the rating, Citi has now resumed coverage of AMC with a sell rating and a price target of just $1.60 per share.
Shares of AMC traded near $4.60 a share on Thursday, up about 6% during the session.
– Jesse Pound
4 hours ago
Netflix stock is recovering and is on course for its best day of the year
Netflix shares are up more than 9% on Thursday after a report from YipitData said the company’s gross additions in Canada improved. YipitData was not immediately available to comment on the report.
Thursday’s gain brought the stock back to its best day of the year through Oct. 19, 2022, when Netflix gained more than 13%. Netflix stock volume has been resilient. More than 7.8 million shares have changed hands to date, beating the 30-day moving average volume of 6.1 million shares.
– Christina Cheddar Berk
4 hours ago
Block is still a cheap stock given CashApp’s concerns about criminal activity, Baird says
According to Baird, Block remains a cheap stock despite concerns about the ease with which criminal activity can persist on the company’s CashApp service. Block’s shares plummeted in early trading on Thursday.
“We believe that CashApp serves and helps many of those who use the system in a legal manner,” said David J. Koning, Senior Research Analyst at Baird. He added that CashApp’s vulnerability to illegal activity is no different than any other financial institution.
Meanwhile, Baird reckons that in a “pretty bad case” in which the company loses about 20% of CashApp accounts, the result could result in an 8% drop in overall gross profit.
– Brian Evans
5 hours before
Oppenheimer Downgrades Coinbase, Calling “Unhealthy Regulatory Climate”
Oppenheimer analyst Owen Lau downgraded Coinbase Global to outperform and removed its $70 price target, citing worrying regulatory signals for the digital asset sector following the collapse of Silicon Valley Bank and Signature Bank and other banks.
The downgrade comes after the U.S. Securities and Exchange Commission slammed Coinbase with a note from Wells saying it identified possible violations of U.S. securities laws. It also comes after the White House “strongly criticized” the digital asset sector this month.
“While we remain very supportive of blockchain/digital asset development in the US, in this unhealthy regulatory climate, we are increasingly concerned about the fairness of enforcement efforts and the ecosystem’s ability to thrive with seemingly limited and shrinking support from the US banking system “Lau wrote on Thursday.
CNBC Pro subscribers can read the full story here.
– Sarah Min
5 hours before
Social media stocks are ticking higher, as TikTok CEO attests
Some social media stocks rose Thursday, TikTok CEO Shou Zi Chew testified before the House Energy and Trade Committee on the possibility of his platform being banned in the US
Shares in Facebook owner Meta Platforms rose 3%, while YouTube operator Alphabet rose 2.5%. Snap shares are up 8.3%.
Chew will answer questions about data and privacy as the government weighs how the tech company should be regulated and, like many other tech companies, the potential harms its platform poses to consumers.
See grafic…
Snap shares pop, TikTok CEO testifies
5 hours before
Solar stocks are up 8.5% this week, their best week since mid-January
Solar stocks are up 8.5% for the week, entering their best week since Jan. 13, when the Invesco Solar ETF rose 10.65%. Array Technologies, JinkoSolar Holding, and Enphase Energy stocks are among the top performers, all up more than 15% or more.
- Array shares are up more than 24% this week and are heading for their best week since Jan. 13, when they gained 25.24%.
- JinkoSolar is up 15.6% this week and is heading for its best week since Jan. 13, when it gained 27.52%.
- Enphase shares are up more than 15% this week, posting their best week of the year to October 28, 2022 when ENPH gained 21.13%.
See grafic…
Invesco Solar ETF 5 day chart
— Gina Francolla, Sarah Min
6 hours ago
China Internet ETF rebounds 6%, its best performance since January
The China Internet ETF (KWEB) is up more than 6%, on track to post its best day since the first week of 2023.
Kingsoft helped propel the ETF up with gains of more than 12%. Meituan and Tencent Holdings followed, each up more than 8% in Thursday’s session.
The ETF is on track for its best daily performance since Jan. 4, when it gained 8.8%.
— Alex Harring, Gina Francolla
6 hours ago
Tech stocks lead the market higher
Tech stocks outperformed on Thursday, with the Nasdaq 100 index up more than 1.4%. Netflix was among the top performers, up about 7%. Meta Platforms, Amazon, Alphabet, and Microsoft shares were also up more than 1%.
6 hours ago
Stocks open higher on Thursday
7 hours ago
Stocks making the biggest moves premarket
Check out the companies making headlines before the bell.
Coinbase – Shares of the cryptocurrency trading app fell more than 11% in premarket trading after Coinbase received a notice from Wells of the Securities and Exchange Commission. Oppenheimer also downgraded the stock to outperform, citing Wells’ announcement and concerns about blockchain development in the US. The Biden administration also criticized the entire digital asset sector. Jefferies and Key Banc also raised concerns about Coinbase.
First Republic, PacWest — The two regional banks traded higher after Wednesday’s sell-off. First Republic gained 5.6% after shedding 15.5% on Wednesday. PacWest gained 4.7%, gaining some ground after Wednesday’s 17.1% drop.
Regions Financial – Shares in the regional bank gained 1.3% in premarket trading. Regions fell more than 6% on Wednesday after the Fed’s decision to raise interest rates by 25 basis points and Chairman Jerome Powell said the banking system was well resourced and safe.
Check out the full list here.
– Brian Evans
7 hours ago
Block stocks plunge more than 20% during premarket trading
Shares in Jack Dorsey’s payments company Block fell over 20% Thursday morning after Hindenburg Research said the payments company was its latest short position. Hindenburg Research wrote in a Thursday report that Block facilitates fraud.
“The ‘magic’ behind Block’s business wasn’t disruptive innovation, but the company’s willingness to facilitate consumer and government fraud, avoid regulation, disguise bootleg loans and fees as disruptive technology, and mislead investors with inflated metrics ‘ the short seller wrote in a Thursday report.
— Hakyung Kim, Rohan Goswami, MacKenzie Sigalos