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Wall Street opens slightly lower
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US2000 drops below 1,750 pts support zone
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US regional banks remain under pressure, PacWest slumps
Wall Street indices launched today's cash trading session slightly lower. While FOMC delivered a 25 basis point rate increase yesterday, it has also strongly hinted that it may have been the final hike in the cycle. Deteriorating macroeconomic situations as well as banking issues are causing the US central bank to take a more cautious approach. Speaking on banking issues, those seem to continue to mount, at least in case of smaller regional banks, with PacWest announcing that it is exploring strategic options and First Horizon terminating merger agreement with TD Bank.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appUS small-cap index Russell 2000 (US2000) dropped below the 1,750 pts support zone. Index is attempting to climb back above this hurdle but the first attempt at doing so turned out to be a failure. Should sellers regain control over the market and push the index lower, attention may shift to the 1,710 pts swing area that saw a number of price twists over the past 12 months. Breaking below this zone would pave the way for a drop towards and test of lows from June 2022 and September-October 2022.
Company News
PacWest (PACW.US) deepens recent sell-off today. PacWest confirmed media reports yesterday in the evening, saying that it is indeed exploring strategic options. Bank said that it has not experienced any unusual deposit outflow after JPMorgan took over First Republic Bank but has been approached by potential partners and investors with whom decisions are still ongoing. PacWest is planning a sale of a $2.7 billion loan portfolio that will allow it to boost its common equity tier ratio from 9.21% to 'at least 10%'. PacWest shares are plunging around 40% today
First Horizon National (FHN.US) slumps over 35% today after announcing that it has agreed with TD Bank to terminate the previously reached merger agreement. Two banks mutually agreed to terminate a $13 billion deal after First Horizon's share price plunged amid recent banking turmoil. First Horizon closed at $15.05 on Wednesday - around 40% below $25 per share takeover offer from TD Bank.
Arconic (ARNC1.US) rallies today following a Wall Street Journal report. WSJ reported that Apollo Global Management, an investment company, is nearing a deal to buy Arconic, an industrial parts manufacturer. Arconic trades almost 30% higher today. Acquisition price is said to be around $30 per share, or 33% above yesterday's market closing price.
Arconic (ARNC1.US) is rallying after WSJ hinted that the company may be acquired by Apollo Global Management at $30 per share. Stock launched today's trading with a big bullish price gap and is trading back within the range of an upward channel. A near-term resistance zone to watch can be found near the upper limit of the channel in the $30.50 area. Source: xStation5
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