Bank ETFs stabilize but are still down on the week, Activision Blizzard's stock surges, and other stocks on the move
By Barbara Kollmeyer
Block shares see more weakness, and Charles Schwab's stock gets a lift
Here are some of the more prominent stock movers Friday, with the broader stock market pulling back over signals of more bank distress from Europe.
Sector watch, banks:
While the beleaguered bank sector saw some stabilization in the past week, as regulators attempted to assure investors that risk of contagion was minimal, the overall tone remained negative.
The SPDR S&P Regional Banking exchange-traded fund(KRE) was little changed in morning trading, but has lost 2.8% on the week, while the SPDR S&P Bank ETF(KBE) has declined 2.5% in the past week.
In comparison, from March 8, when the Silicon Valley Bank parent SIVB Financial Group made its troubles public, through the end of last week, the regional banking ETF had tumbled 24.7% and the bank ETF had shed 22.2%.
Among some of the more prominent movers during that time, First Republic Bank's stock (FRC)has sunk 47.0% this week, after plunging 80.0% from March 8 through March 17; PacWest Bancorp shares (PACW) have declined 1.0% this week, after losing 65.2% over the previous seven trading sessions; and Western Alliance Bancorp's stock (WAL) has given up 2.0% this week after shedding 56.2% over the previous seven days.
Among some major U.S. banks, shares of JPMorgan Chase & Co.(JPM) have lost 1.7% this week after losing 8.7% the seven days prior; of Goldman Sachs Group Inc.(GS) have gained 1.6% this week after falling 13.1% the prior seven days; and of Bank of America Corp. (BAC) were down 5.2% this week after declining 14.6% the previous seven days.
U.S.-listed shares of Deutsche Bank AG(DBK.XE) slid 5.2%, tracking losses in Europe. Weakness came a day after the German lender's 5-year credit-default swaps widened, which was reportedly the biggest one-day rise in its history
Other European bank ADRs also fell, with shares of Spanish lender Banco Santander SA (SAN.MC) down 2.4%. Shares of UBS Group AG(UBS) down 4.3%, with similar losses for Credit Suisse AG (CSGN.EB), the troubled Swiss rival that it has agreed to buy. Citing sources, Bloomberg reported Thursday that the two banks were included in subpoenas sent to several banks over allegedly helping Russian oligarchs avoid sanctions. Both banks declined to comment to Bloomberg, which also reported that two U.S. banks had been sent subpoenas as well.
Scholastic Corp.'s stock (SCHL) sank 24.2% after the children's publishing, education and media company reported a wider quarterly loss.
Shares in Jack Dorsey's Block Inc.(SQ) fell 3.6%, continuing a fall from the previous session, after a short seller report from U.S. fund Hindenburg Research published allegations into the parent company of Cash App and Square. Block called the report "factually inaccurate" and "misleading."
89bio Inc.'s stock (ETNB) was down 5.8% after the biopharmaceutical company took advantage of a big rally over the previous two sessions to offer stock for sale to the public, which was upsized by about 38% as it priced.
Activision Blizzard Inc. shares (ATVI) surged 5.3% toward a near two-year high, after the U.K.'s Competition and Markets Authority (CMA) said it was narrowing the scope of concerns that it had about the company's pending acquisition by Microsoft Corp. (MSFT), which was announced more than a year ago.
Charles Schwab Corp.'s stock (SCHW) gained 0.5% after Chief Executive Walt Bettinger of the brokerage and financial services firm told The Wall Street Journal that it has enough resources to continue to operate even if it lost its deposits over the coming year.
Torrid Holdings Inc.'s stock CURV shot up 23% after the plus-size retailer's fourth-quarter sales topped estimates and its loss narrowed
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March 24, 2023 11:37 ET (15:37 GMT)
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