NEW YORK (Dow Jones) — The US stock exchanges started little changed on the global Labor Day, when most stock markets are idle. The fact that JP Morgan Chase was awarded the contract to take over the ailing bank First Republic initially does not provide any positive impetus, even if this increases hopes that the situation in the banking sector as a whole will calm down further.
The fact that the US Federal Reserve will decide on interest rates again on Wednesday is causing reluctance. An increase of 25 basis points to between 5.00 and 5.25 percent is expected with a probability of almost 80 percent. The more decisive question at the moment seems to be how things will continue from there and then there will be a pause in interest rate hikes or the course will even be set for interest rate cuts again later in the year. Yields are rising in the US bond market, most notably at the short end. This supports the dollar, the dollar index is slightly up.
On the economic side, meanwhile, China is putting a damper on things. There, Purchasing Managers’ Indices for April fell versus March, missing expectations. In addition, the index for the Chinese manufacturing sector even slipped below the 50 threshold, which points to a contraction. Against this background, oil prices are falling by a good 2 percent.
The Dow Jones index gained 0.2 percent to 34,161 points, the S&P 500 and Nasdaq indices hovered around their Friday closing levels.
Fourth US bank collapse this year
First Republic is already the fourth bank in the US to collapse this year, partly as a result of the sharp rise in interest rates, and whose collapse must now be handled in this way without causing further shock waves. The larger Silicon Valley Bank had made the start. JP Morgan now takes over all of the deposits and substantially all of the assets of the First Republic. The largest US bank expects the transaction to be slightly profit-boosting on balance.
The JPM price increases by 3 percent. PNC Financial Services, on the other hand, is down 5.6 percent. The financial service provider, like Bank of America (+0.6%), was another interested party for First Republic, for which no price is yet available. In the previous week, it had already plunged 75 percent after the bank recorded a massive outflow of deposits in the first quarter.
Bid from Japan drives Iveric Bio
Among the other individual values, Iveric Bio make a leap of around 14 percent. The driving factor here is that the Japanese pharmaceutical giant Astellas is taking over the US company, which specializes in ophthalmology, for around $5.9 billion or $40 per share.
Chinese electric car manufacturers are falling. They were still up premarket after they announced their deliveries for April, which varied. At Li Auto they rose by 500 percent (-0.2%), at XPeng (-2.1%) they fell by 20 percent and at Nio (-2.1%) they rose by a good 30 percent. Tesla shares are down 1.6 percent.
SoFi Technologies lose 3.7 percent. The financial service provider increased the volume of personal loans by 46 percent in the first quarter, but only slightly exceeded profit expectations. The course had increased before the market.
FuelCell Energy up 8.0 percent after the fuel cell technology platform maker won an order from Exxon subsidiary Esso Nederland.
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INDEX last +/-% absolute +/-% YTD
DJIA 34,160.80 +0.2% 62.64 +3.1%
S&P 500 4,172.67 +0.1% 3.19 +8.7%
Nasdaq Comp. 12,219.11 -0.1% -7.48 +16.8%
Nasdaq-100 13,229.61 -0.1% -16.38 +20.9%
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.11 +10.3 4.00 -31.4
5 years 3.55 +6.2 3.49 -44.7
7 years 3.52 +6.2 3.46 -44.6
10 years 3.47 +5.5 3.42 -40.5
30 years 3.72 +4.4 3.68 -25.1
FOREX last +/- % Fri 8:36am Thu 5:15pm % YTD
EUR/USD 1.1023 +0.0% 1.1015 1.1018 +3.0%
EUR/JPY 150.81 +0.5% 149.09 147.64 +7.5%
EUR/CHF 0.9838 -0.1% 0.9852 0.9870 -0.6%
EUR/GBP 0.8784 +0.2% 0.8828 0.8826 -0.8%
USD/JPY 136.81 +0.4% 135.35 134.00 +4.3%
GBP/USD 1.2550 -0.1% 1.2477 1.2480 +3.8%
USD/CNH (Offshore) 6.9407 +0.2% 6.9264 6.9376 +0.2%
Bitcoin
BTC/USD 28,561.17 -2.9% 29,442.26 29,048.02 +72.1%
CRUDE OIL last VT settlem. +/- % +/- USD % YTD
WTI/Nymex 75.75 76.78 -1.3% -1.03 -5.6%
Brent/ICE 79.00 80.33 -1.7% -1.33 -6.3%
GAS VT Settlem. +/- EUR
Dutch TTF 38.88 38.54 +0.9% +0.34 -50.9%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 2,003.12 1,990.06 +0.7% +13.07 +9.8%
Silver (Spot) 25.74 25.06 +2.7% +0.68 +7.4%
Platinum (Spot) 1,087.50 1,080.18 +0.7% +7.33 +1.8%
Copper future 3.98 3.87 +2.7% +0.11 +4.2%
YTD relative to previous day’s close
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(END) Dow Jones Newswires
May 01, 2023 09:48 ET (13:48 GMT)
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