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- 📊 NYCB's Nail Biter
📊 NYCB's Nail Biter
Ticker Tea
March 07, 2024
Yesterday the markets took a deep breathe with major indices closing positive on the day. Traders were initially focused on Powell’s testimony when NYCB stole the headlines. The stock plummeted -42% while the market grappled with the possibility of yet another bank failure.
Later that afternoon, the company announced a $1bn equity infusion which sent the stock +30% and ultimately closed at $3.46, a +7.5% gain (chart). The stock is down -67% YTD.
Other regional banks struggled in sympathy with NYCB, but ultimately rebounded with $KRE (chart) ending the day marginally down (-.12%). KRE is down -6% YTD.
Powell’s testimony gave us little to digest, echoing the same talking points we have heard the past few weeks: the Fed needs more confidence on inflation in order to begin cutting rates.
Perhaps the most surprising commentary of the day came from Fed President Neel Kashkari, who said he expects the Fed to cut interest rates two times — or potentially just once — in 2024, but emphasized he hasn’t finalized his forecasts for the upcoming meeting.
The market is currently pricing in 3-4 rate cuts this year.
How many rate cuts do you expect this year? |
Poll Results & Respondent Commentary 👇
Are You Bullish or Bearish (Assuming a 3 Month Time Horizon)?
🟩🟩🟩🟩🟩🟩 Bullish (56%)
🟨🟨🟨🟨⬜️⬜️ Bearish (44%)
“Very bullish on Crypto. Too many signs are telling us that it will rise. I expect it to be the best asset class of 2024. At least, I hope it will be.” - Chris
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» New York Community Bancorp ($NYCB) has garnered over $1bn in equity investments, spearheaded by Steven Mnuchin's Liberty Strategic Capital, alongside Hudson Bay Capital, Reverence Capital Partners, and others. This strategic move, aimed at bolstering NYCB amidst financial challenges, highlights investor confidence and marks a significant capital reinforcement for the bank. (link)
» Fed Chair Jerome Powell hinted at significant changes to proposed bank capital rules, potentially marking a regulatory win for Wall Street. This shift could signal a softening of Biden-era policies, emphasizing the banking sector's influence in Washington and sparking industry optimism. (link)
» Palantir ($PLTR) announced a $178 million contract with the U.S. Army, sparking interest on Reddit's WallStreetBets. Users highlighted the contract's potential for a larger production deal, given its focus on prototype development. The news propelled $PLTR to significant gains, reflecting the company's strong positioning in the AI sector and its impact on its market valuation. (link)
» Victoria’s Secret ($VSCO) forecasts $6 billion in net sales for the year, missing analysts' expectations and highlighting its struggle for growth amidst rebranding efforts. Shares tumbled 26% following the announcement, underscoring the retailer's faltering turnaround. (link)
» Abercrombie & Fitch ($ANF) forecasts a revenue increase of 4-6% for the year, signaling a slowdown from last year's 21% growth. Despite outperforming rivals with five consecutive quarters of growth, the shares dropped 3.8% in early trading. (link)
» Meta ($META) is developing a unified AI model to enhance its video recommendation system across all platforms, aiming to boost engagement and efficiency. This strategic shift will integrate various services like Reels and traditional videos under one AI-driven framework, leveraging extensive investment in Nvidia ($NVDA) GPUs for improved model performance. (link)
» Valisure, an independent lab, discovered high benzene levels in acne treatments from brands like Proactiv and Clearasil, urging the FDA to recall these benzoyl peroxide-based products. This revelation puts consumer safety and regulatory oversight in the spotlight. (link)
Major earnings releases scheduled the next five business days:
Economic results from yesterday are below, along with today’s schedule:
Don't sit down and wait for the opportunities to come. Get up and make them.
Madam C.J Walker
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