Stocks closed mixed on Monday as traders assessed U.S. and international regulators’ actions to contain the potential damage from the collapse of Silicon Valley Bank. Investors were hopeful that bank struggles would prompt less aggressive interest rate hikes from the Federal Reserve.
These stocks made moves Monday:
First Republic Bank fell 62%. The bank said Sunday it “further enhanced and diversified its financial position” through additional liquidity from JPMorgan Chase (JPM) and the Federal Reserve.
Shares of First Republic sank as much as 50% on Friday following the collapse of Silicon Valley Bank. The bank doesn’t cater to the venture capital industry as much as Silicon Valley Bank did, but investors have worried about its concentrated, well-heeled, deposit base that might look to move their savings into higher-yielding products, thereby eroding a low-cost source of funding for the bank.
Other banks tumbled: Zion Bancorp fell 26%, Comerica (CMA) declined 28%, KeyCorp (KEY) slid 27%, American depository receipts of Credit Suisse (CS) fell 4.7%, and Fifth Third Bancorp (FITB) dropped 14%. The largest U.S. banks also fell, such as JPMorgan Chase (JPM), down 1.8%, Bank of America (BAC), down 5.7%, and Citigroup (C) declined 7.4%.
Charles Schwab fell 12% as the brokerage grappled with the aftermath of Silicon Valley Bank’s closing. Schwab shares were upgraded to Buy from Neutral by analysts at Citi on Monday.
American depositary receipts of HSBC fell 2% after the biggest bank in Europe agreed to buy the U.K. unit of Silicon Valley Bank in a deal brokered by the British government and the Bank of England.
Pfizer announced Monday it will acquire Seagen, a cancer-focused biotech, for $229 a share in a deal with a total enterprise value of $43 billion. Seagen (SGEN) rose 15% to $199. Pfizer rose 1.2%.
Provention Bio was soaring 259% to $24.07 after the U.S.-based biopharmaceutical company focused on autoimmune diseases agreed to be acquired by France’s Sanofi (SNY) for $25 a share, or about $2.9 billion.
Illumina gained 17% after Carl Icahn said he was preparing a proxy fight at the biotechnology company. Icahn argues Illumina cost its shareholders roughly $50 billion by moving ahead with a risky acquisition of cancer-screening company Grail.
Qualtrics shares jumped 6.8% after the cloud software company agreed to be acquired by private-equity firm Silver Lake, in partnership with Canada Pension Plan Investment Board, in an all-cash transaction that values Qualtrics at about $12.5 billion.
Bill Holdings rose 8% even after the provider of financial automation software for businesses said Saturday it has about $300 million in corporate cash, cash equivalents, and short-term investments held with Silicon Valley Bank. Bill said SVB’s closure would have “minimal impact” on its financial positioning.
Moderna shares rose 7% after shares of the vaccine maker received an upgrade to Outperform from Market Perform by analysts at TD Cowen.
Rivian Automotive fell 3% after The Wall Street Journal reported the electric truck startup was in talks with Amazon.com (AMZN) to end their exclusivity agreement on electric vans.
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