Traders Market Weekly: The Fed, BoE and SNB and a Leaky Dyke…

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    SVB Financial, top executives sued by shareholders – report

    SVB Financial, its CEO Greg Becker and CFO Daniel Beck have reportedly been sued by shareholders over their failure to disclose how elevated interest rates left Silicon Valley Bank susceptible to a bank run.

    This is likely the first of many lawsuits that could emerge after the collapse of Silicon Valley Bank, which led to wider contagion fears in the banking sector.

    The proposed class action from shareholders led by Chandra Vanipenta was filed in the federal court in San Jose, California, Reuters reported.

    Note that Becker sold almost $3.6M of SVB (SIVB) shares through a trading plan about two weeks before its banking unit failed. CFO Beck also sold ~$575K worth of stock.

    SVB (SIVB) is exploring strategic alternatives for the holding company, as well as its SVB Capital and SVB Securities units.

    The FDIC is reportedly planning another auction of Silicon Valley Bank assets as no suitors emerged over the weekend.


    Dow 32,155.40 336.26 1.06%
    S&P 500 3,920.56 64.80 1.68%
    Nasdaq 11,428.15 239.31 2.14%
    VIX 23.73 -2.79 -10.52%
    Gold 1,908.10 -8.40 -0.44%
    Oil 71.50 -3.30 -4.41%


    HOPEFULLY all banks will hold up well … or it’s the END OF WORLD — wish a world wide ECON collapse
    Still, I believe we should be OKAY in days ahead … as FOMC has a delicate balancing act ahead 🙂


    Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note.

    Japan’s Nikkei: UNCH,
    Hong Kong’s Hang Seng: +1.5%,
    China’s Shanghai Composite: +0.6%,
    India’s Sensex: -0.6%,
    South Korea’s Kospi: +1.3%,
    Australia’s ASX All Ordinaries: +0.9%.


    China reported decent growth figures for February. Japan’s chief cabinet secretary said that solid wage increases are being seen among large companies.

    China’s February Industrial Production 2.4% yr/yr (expected 2.6%; last 1.3%), February Retail Sales 3.5% yr/yr, as expected (last -1.8%), February Fixed Asset Investment 5.5% yr/yr (expected 4.4%; last 5.1%), and February Unemployment Rate 5.6% (last 5.5%)


    South Korea’s February Unemployment Rate 2.6% (last 2.9%). February trade deficit $5.27 bln (last deficit of $5.30 bln). February Imports 3.5% yr/yr (last 3.6%) and Exports -7.5% yr/yr (last -7.5%)

    India’s February trade deficit $17.43 bln (expected deficit of $19.00 bln; last deficit of $17.75 bln)

    Singapore’s Q4 Unemployment Rate 2.0% (last 2.1%)

    A U.S. Congressional delegation is visiting Taiwan today and tomorrow.


    Major European indices trade lower across the board with concerns about banks continuing to weigh on sentiment.

    STOXX Europe 600: -2.6%,
    Germany’s DAX: -2.7%,
    U.K.’s FTSE 100: -2.2%,
    France’s CAC 40: -3.0%,
    Italy’s FTSE MIB: -3.4%,
    Spain’s IBEX 35: -3.6%.


    Eurozone’s January Industrial Production 0.7% m/m (expected 0.4%; last -1.3%); 0.9% yr/yr (expected 0.2%; last -2.0%)

    Germany’s February WPI 0.1% m/m (last 0.2%); 8.9% yr/yr (last 10.6%)

    France’s February CPI 1.1% m/m (expected 0.9%; last 0.4%); 6.3% yr/yr (expected 6.2%; last 6.0%)


    Credit Suisse has fallen more than 20.0% to a fresh record low in Zurich while names like BNP Paribas and Societe Generale are also facing pressure.

    The European Central Bank is reportedly still leaning toward announcing a 50-bps rate hike tomorrow.

    Germany’s ifo Institute continues expecting the domestic economy to contract 0.1% in 2023, followed by 1.7% growth in 2024.


    Credit Suisse (CS 1.97, -0.54, -21.5%): top shareholder rules out additional investments, according to Bloomberg

    Lennar (LEN 103.30, +2.53, +2.5%): beats by $0.57, beats on revs; guides for FY23 deliveries of 62,000-66,000
    SentinelOne (S 14.57, +0.10, +0.7%): beats by $0.03, beats on revs; guides AprQ revs above consensus; guides FY24 revs below consensus
    Smartsheet (SMAR 42.60, +4.28, +11.2%): beats by $0.08, beats on revs; guides AprQ EPS above consensus, revs below consensus; guides FY24 EPS above consensus, revs below consensus
    Guess? (GES 19.99, -1.28, -6.0%): beats by $0.44, beats on revs; guides Q1 EPS below two analyst estimate, revs below two analyst estimate; guides FY24 EPS below two analyst estimate, revs in-line


    Freshpet (FRPT 49.00, -6.67, -12.0%): to offer $350 mln in convertible notes in a private offering


    SPDR S&P Bank ETF (KBE 36.50, -1.02, -2.7%): many banks trading lower in wake of Credit Suisse developments


    The Producer Price Index fell 0.1% in February (consensus +0.3%) following a revised 0.3% increase in January (from 0.7%). The core-Producer Price Index, which excludes food and energy, was unchanged in February ( consensus 0.4%) following a revised 0.1% increase in January (from 0.5%).

    Retail sales fell 0.4% in February (consensus 0.2%) after a revised 3.2% increase in January (from 3.0%). Retail sales, excluding autos, fell 0.1% ( consensus -0.1%) following a revised 2.4% increase (from 2.3%).

    Empire State Manufacturing fell to -24.6 in March (consensus -8.0%) from -5.8 in February.


    Dow -468.65 at 31686.66, Nasdaq -106.46 at 11321.69, S&P -53.19 at 3867.37

    The stock market opened to sizable losses after worries about the health of the banking sector were brought to the forefront.

    The sentiment shift has been driven by reports that Credit Suisse’s (CS 2.11, -0.39, -15.1%) largest shareholder, Saudi National Bank, said it cannot offer further help, which stoked large losses in European bank stocks. In addition, BlackRock CEO Larry Fink highlighted in his annual letter the potential for a liquidity crunch.

    The S&P 500 financial sector is down 3.1% amid broad selling efforts. The defensive-oriented consumer staples (-0.6%) and utilities (-0.3%) sit atop the leaderboard with the slimmest losses.

    The 2-yr note yield is down 45 basis points to 3.76% and the 10-yr note yield is down 23 basis points to 3.40%.


    Dow 31,874.57 -280.83 -0.87%
    S&P 500 3,891.93 -27.36 -0.70%
    Nasdaq 11,434.05 5.90 0.05%
    VIX 26.14 2.41 10.16%
    Gold 1,923.30 12.40 0.65%
    Oil 68.24 -3.09 -4.33%
    BITCOIN 24,444


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