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Credit Suisse shares plunged Monday after the Swiss bank was purchased by larger rival UBS.
Fabrice Coffrini/AFP via Getty Images
Stocks were mostly higher Monday after UBS agreed to acquire Credit Suisse and central banks moved to improve dollar liquidity.
These stocks were making moves Monday:
American depositary receipts of Swiss bank
Credit Suisse
(ticker: CS) plunged more than 47% to about 83 cents after larger rival
UBS
(UBS) agreed to buy Credit Suisse in a deal valued at about $3.2 billion. The merger of Switzerland’s two largest banks—engineered over the weekend by Swiss authorities—comes against a backdrop of industry turmoil. U.S.-listed shares of UBS were up 7.7%.
First Republic Bank
(FRC) was falling 13.2%. The regional lender was downgraded deeper into junk territory by S&P Global. Last Wednesday, S&P Global cut the bank’s credit rating into speculative-grade territory. The stock has been tumbling as the collapse of Silicon Valley Bank and two other U.S banks has triggered concerns about the health of the U.S. banking system.
JPMorgan Chase
(JPM) and other big banks stepped in last week to shore up First Republic Bank to the tune of $30 billion.
Flagstar Bank, a subsidiary of New York Community Bancorp (NYCB), agreed on Sunday to acquire much of what was once Signature Bank. Starting Monday, Signature Bank’s 40 branches will operate under Flagstar Bank. Signature Bank collapsed just over a week ago, days after Silicon Valley Bank faced the same fate. Shares of New York Community Bancorp also were upgraded to Outperform from Neutral by analysts at Wedbush. Shares were rising 33.3%.
PacWest Bancorp
(PACW) gained 20.6%, leading shares of regional banks higher after last week’s volatile trading.
American depositary receipts of PDD Holdings, or
Pinduoduo
(PDD), tumbled 13.9% after the Chinese e-commerce company posted fiscal fourth-quarter revenue that missed analysts’ expectations.
Bed Bath & Beyond
(BBBY) sank 10.8%, continuing its tumble on Friday when the retailer disclosed plans for a reverse stock split.
Shares of
Franchise Group
(FRG), which owns Vitamin Shoppe, American Freight, and Pet Supplies Plus, rose 8.6% after it “received an unsolicited non-binding proposal” to be purchased for $30 per share in cash.
Enphase Energy
(ENPH), a maker of batteries used in solar systems, rose 6.8% after the stock was upgraded to Outperform from Market Perform at Raymond James.
Foot Locker
(FL) shares rose 4.9%. The footwear retailer’s profit forecast for the year was lower than expected, but management anticipates strong long-term growth as new CEO Mary Dillon moves to reset the business.
Dell Technologies
(DELL) shares rose 2.2% after analysts at Goldman Sachs initiated coverage on the stock with a Buy recommendation. Both
Hewlett Packard Enterprise
(HPE) and
HP Inc.
(HPQ) were initiated at Neutral, with shares rising 1.1% and 0.7%, respectively.
Earnings reports will be coming later in the week from companies such as
Nike
(NKE),
GameStop
(GME),
Chewy
(CHWY),
KB Home
(KBH), and
General Mills
(GIS).
Write to Joe Woelfel at joseph.woelfel@barrons.com
