U.S. stock futures rose on Monday, after First Citizens BancShares helped calm unsettled markets by saying that it would take the deposits and loans of failed Silicon Valley Bank .
Market Snapshot
At 8:20 a.m. ET, Dow e-minis were up 204 points, or 0.63%, S&P 500 e-minis were up 25.5 points, or 0.64%, and Nasdaq 100 e-minis were up 46.75 points, or 0.36%.
Pre-Market Movers
U.S. regional banks: First Republic Bank led a rebound in US regional bank stocks in premarket trading. First Republic Bank surged 25%; Silvergate Capital jumped 11.6%; PacWest Bancorp rose 9.4%; Western Alliance Bancorp rose 5.75%.
First Citizens Bancshares — Shares popped 40% onnews that First Citizens will buyaround $72 billion of Silicon Valley Bank assets at a discount of $16.5 billion.
Novartis — American depositary receipts of Novartis rose 6% after the Swiss pharmaceutical company reported positive top-line results from a trial of breast-cancer drug Kisqali. Novartis said Kisqali plus endocrine therapy "significantly reduced the risk of disease recurrence" compared with standard endocrine therapy alone.
BioNTech ’s stock slides 4.6% premarket as Covid-19 vaccine sales are set to fall by more than two-thirds this year as demand wanes for its only marketed product.
Pinterest— Pinterest gained 4.3% afterUBS upgraded the social media stock to buyand said shares could pop more than 25% as the company improves its advertising strategy.
Caterpillar— Shares dropped 1.2% after Baird downgraded the machinery company to underperform, citing potential headwinds driven by a “meaningful slowdown” in new small- and medium-sized nonresidential projects in 2024 due to ongoing turmoil with regional bank lenders.
KeyCorp— KeyCorp gained 6.8% after Citi upgraded the stock to buy from neutral. Citi analyst Keith Horowitz gave KeyCorp a price target of $20, suggesting the stock stands to gain 68.6% since Friday’s close.
Dish Network— The satellite company’s shares fell 2.5% after aclass-action lawsuit was announcedagainst the company by Dish investors who purchased the stock between Feb. 22, 2023 and Feb. 27, 2023. The lawsuit alleges that Dish overstated its efficiency and infrastructure capabilities as it experienced a widespread network outage due to a cybersecurity breach last month. Shares are down almost 38% year to date.
Market News
First Citizens Bank to Buy SVB's Deposits, Loans from FDIC
First Citizens Bancshares agreed to buy Silicon Valley Bankwhich was seized by regulators following a run on the lender.
The Raleigh, North Carolina-based bank entered into a purchase and assumption agreement for all deposits and loans of SVB, according to a statement from the Federal Deposit Insurance Corp. The deal includes the purchase of about $72 billion SVB assets at a discount of $16.5 billion.
Tesla's Giga Berlin Hits Weekly Production Rate of 5,000 Vehicles
Tesla’s Berlin Gigafactory has achieved a weekly production capacity of 5,000 vehicles, the company’s official Twitter handle tweeted on Saturday. Weekly production capacity is a measurement that Tesla looks at when preparing a new factory for volume production.
The ramp-up to 5,000 vehicles per week comes a year after the company' plant delivered the first vehicles to customers.
CVS Expects to Close $8 Bln Signify Deal This Week
CVS Health Corp said on Monday it expects to complete its acquisition of healthcare services company Signify Health this week, subject to certain conditions, potentially ending months of antitrust scrutiny on the 8 billion deal.
CVS' potential acquisitions of two healthcare service providers Signify and Oak Street Health, along with other such deals, have been facing increasing scrutiny over their impact on cost of healthcare in the United States.
BioNTech Sees Vaccine Drop, Underlining Shift Toward Cancer
BioNTech SE’s Covid-19 vaccine sales are set to fall by more than two-thirds this year as demand wanes for its only marketed product.
The German drugmaker expects revenue of about €5 billion ($5.4 billion) in 2023, it said in a statement outlining its full-year financial results. The company is renegotiating its supply contract with the European Union’s executive body, which may see deliveries spread across multiple years and a possible reduction in volume, BioNTech said.
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