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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
Stock futures were rising slightly Monday after UBS agreed to acquire Credit Suisse and central banks moved to improve dollar liquidity.
These stocks were poised to make moves Monday:
American depositary receipts of Swiss bank
Credit Suisse
(ticker: CS) plunged more than 58% 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 down 3.4%.
First Republic Bank
(FRC) was falling 16.2% in premarket trading. 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 Market Perform at Keefe Bruyette. Shares were rising 23.1%.
Dell Technologies
(DELL) shares rose slightly in premarket trading 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.
Enphase Energy
(ENPH), a maker of batteries used in solar systems, rose 1.2% after the stock was upgraded to Outperform from Market Perform at Raymond James.
Foot Locker
(FL) shares rose 0.6% even after the footwear retailer issued a disappointing forecast for 2023.
American depositary receipts of PDD Holdings, or
Pinduoduo
(PDD), tumbled 10.5% in premarket trading after the Chinese e-commerce company posted fiscal fourth-quarter revenue that missed analysts’ expectations.
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
