Connect with us


Stock futures are flat following Tuesday’s bank stock comeback: Live updates



Traders work on the floor of the New York Stock Exchange (NYSE) in New York, October 7, 2022.

Brendan McDermid | Reuters

Stock futures were flat in overnight trading after bank shares rallied on Tuesday, and investors shook off fears that recent banking turmoil would spread to broader sector.

Futures tied to the Dow Jones Industrial Average dipped 54 points, or 0.17%, while S&P 500 futures and Nasdaq 100 futures traded 0.1% lower.

First Republic and other banking shares rose in overnight trading, building on Tuesday’s recovery, while shares of homebuilder Lennar added 3% on positive earnings results.


The overnight moves followed a positive day for the three major averages. The Dow Jones Industrial Average adding 336 points to snap a five-day losing streak. The Nasdaq Composite gained 2.14%, while the S&P 500 jumped 1.65%.

The 11 S&P sectors finished in positive territory Tuesday, led to the upside by communication services, which gained 2.75%. Financials got a 2.2% boost, thanks to a comeback in banking stocks as investors bet on the sector’s resilience despite the collapse of Silicon Valley Bank and Signature Bank.

Regional bank stocks and a slew of household names took a hit earlier in the week as jittery investors feared that government action and the takeover of both banks would spread to the broader sector. Recent comments and news quelled some of those fears, lifting investor hopes that the turmoil will pass.

In other news, the consumer price index for February also came in line with expectations, showing a 0.4% increase from January.

“We saw a relief rally today for two reasons and that’s some stability in the banking sector and a CPI that wasn’t surprising,” said Saira Malik, chief investment officer at Nuveen. “But I don’t think we’re out of the woods yet.”

She told CNBC’s “Closing Bell: Overtime” that the fallout from the SVB collapse could lead to tighter regulation and the beginning of a consumer credit cycle, putting the investment firm in the camp of a very likely recession.

The tail-end of earnings season presses on with results from Adobe, Five Below and Oatly on Wednesday. Investors will also gain more insight into the state of the economy through retail sales and producer price index data due out before the bell.


Source: CNBC

Follow us on Google News to get the latest Updates