{"id":67702,"date":"2023-05-04T09:04:07","date_gmt":"2023-05-04T13:04:07","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=67702"},"modified":"2023-05-04T09:04:07","modified_gmt":"2023-05-04T13:04:07","slug":"coffee-with-greta-is-another-bank-failing","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/05\/04\/coffee-with-greta-is-another-bank-failing\/","title":{"rendered":"Coffee With Greta: Is Another Bank Failing?"},"content":{"rendered":"

DJIA Futures: <\/b>-69 (-0.2%)<\/span><\/p>\n

SPX Futures: <\/b>-11 (-0.3%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-13 (-0.1%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are falling as regional bank fears return.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

PacWest Plunges<\/span><\/h2>\n

PacWest Bancorp <\/b>(PACW) shares are plunging 37.7% ahead of the open amid concerns it will be the next regional bank to fail.\u00a0<\/span><\/p>\n

In a <\/span>statement<\/span><\/a> this morning, the bank confirmed reports that the bank is reviewing \u201cstrategic options\u201d, including a potential sale.<\/span><\/p>\n

PacWest said it \u201cwill continue to evaluate all options to maximize shareholder value.\u201d<\/span><\/p>\n

The statement also said it had not experienced \u201cout-of-the-ordinary deposit flows\u201d after the failure of First Republic Bank earlier this week.<\/span><\/p>\n

The news is dragging down other regional banks as well with the <\/span>SPDR S&P Regional Banking ETF <\/b>(KRE) down 3.9%, <\/span>Western Alliance Bancorp <\/b>(WAL) dropping 14.4%, and <\/span>Comerica <\/b>(CMA) sliding 7%.\u00a0<\/span><\/p>\n

PacWest reported Q1 earnings last week, which showed total deposits declined by $5 billion in the first quarter to $28.2 billion.\u00a0<\/span><\/p>\n

But the bank said it was already seeing a rebound in deposits at the end of the quarter and into the beginning of Q2.\u00a0<\/span><\/p>\n

The turmoil for PacWest comes after the Fed said on Wednesday that the U.S. banking system is sound and resilient.\u00a0<\/span><\/p>\n

Qualcomm Falls On Weak Guidance<\/span><\/h2>\n

Qualcomm <\/b>(QCOM) shares are falling 7.5% in premarket trade after reporting fiscal Q2 results that were in line with expectations but issuing weak guidance.\u00a0<\/span><\/p>\n

Here\u2019s how the chipmaker\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

    \n
  • Adjusted EPS: $2.15 as expected<\/span><\/li>\n
  • Revenue: $9.28 billion vs $9.1 billion expected<\/span><\/li>\n<\/ul>\n

    Total revenue dropped 17% year over year, driven by a slowdown in demand for its cellphone chips.\u00a0<\/span><\/p>\n

    That drop is expected to continue with Qualcomm forecasting $8.5 billion in fiscal Q3 revenue, missing expectations of $9.14 billion.\u00a0<\/span><\/p>\n

    The company also forecast EPS of $1.80 vs analysts\u2019 estimates of $2.16.<\/span><\/p>\n

    Moderna Reports Surprise Q1 Profit<\/span><\/h2>\n

    Moderna <\/b>(MRNA) shares are up 1.8% ahead of the open after reporting a surprise profit in the first quarter.\u00a0<\/span><\/p>\n

    Here\u2019s how the pharmaceutical giant\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

      \n
    • EPS: $0.19 vs a loss of $1.77 per share expected<\/span><\/li>\n
    • Revenue: $1.86 billion vs $1.18 billion expected<\/span><\/li>\n<\/ul>\n

      That profit surprise came despite lower demand for the company\u2019s Covid vaccine.\u00a0<\/span><\/p>\n

      Revenue was down 30% year over year.\u00a0<\/span><\/p>\n

      Moderna maintained its full-year guidance for around $5 billion in Covid vaccine revenue.<\/span><\/p>\n

      Weekly Jobless Claims Climb<\/span><\/h2>\n

      Weekly jobless claims rose more than expected last week as the labor market continues to slowly tighten.<\/span><\/p>\n

      The Labor Department reported 242,000 Americans filed initial unemployment claims.\u00a0<\/span><\/p>\n

      That was up by 13,000 from the previous week and higher than 236,000 expected.\u00a0<\/span><\/p>\n

      Continuing claims though fell by 38,000 to 1.81 million in the week ending April 22.<\/span><\/p>\n

      Q1 Productivity Tumbles<\/span><\/h2>\n

      Worker productivity dropped more than expected in the first quarter.\u00a0<\/span><\/p>\n

      The Bureau of Labor Statistics reported productivity fell 2.7% annually vs expectations for a 1.9% decrease.\u00a0<\/span><\/p>\n

      Output during the quarter rose just 0.2% while hours worked rose 3%.\u00a0<\/span><\/p>\n

      And labor costs picked back up as well.\u00a0<\/span><\/p>\n

      Unit-labor costs rose 4.5% in Q1, up from 3.3% in Q4.\u00a0<\/span><\/p>\n

      Over the past 12-months, unit labor costs have risen 5.3%.<\/span><\/p>\n

      Those rising wages have been a problem for the Fed in its fight against inflation.<\/span><\/p>\n

      Trade Deficit Narrows<\/span><\/h2>\n

      The U.S. trade deficit narrowed in March as exports rose.\u00a0<\/span><\/p>\n

      The Commerce Department reported the deficit dropped by $6.4 billion to $64.2 billion.\u00a0<\/span><\/p>\n

      The decline came as exports rose by $5.3 billion to $256.2 billion.\u00a0<\/span><\/p>\n

      Imports fell by $1.1 billion to $320.4 billion.\u00a0<\/span><\/p>\n

      The goods deficit with China fell by $2.3 billion to $22.9 billion in March.<\/span><\/p>\n

      In Case You Missed It<\/span><\/h2>\n
        \n
      • The Federal Reserve hiked rates as expected by 25 basis points on Wednesday. That puts the federal funds rate in a range of 5% to 5.25%, the highest since August 2007. The FOMC statement seemed to hint this will be the last rate hike as it removed language about future policy tightening being appropriate. But Fed Chair Jerome Powell said in his press conference, \u201cA decision on a pause has not been made today.\u201d Powell emphasized that \u201cthe process of getting inflation back down to 2% has a long way to go.\u201d<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

        DJIA Futures: -69 (-0.2%) SPX Futures: -11 (-0.3%) NASDAQ Futures: -13 (-0.1%) Good morning friends! Futures are falling as regional bank fears return. Let\u2019s get right to it! PacWest Plunges PacWest Bancorp (PACW) shares are plunging 37.7% ahead of the open amid concerns it will be the next regional bank to fail.\u00a0 In a statement this morning, the bank confirmed reports that the bank is reviewing \u201cstrategic options\u201d, including a potential sale. PacWest said it \u201cwill continue to evaluate all options to maximize shareholder value.\u201d The statement also said it had not experienced \u201cout-of-the-ordinary deposit flows\u201d after the failure of First Republic Bank earlier this week. The news is dragging down other regional banks as well with the SPDR S&P Regional Banking ETF (KRE) down 3.9%, Western Alliance Bancorp (WAL) dropping 14.4%, and Comerica (CMA) sliding 7%.\u00a0 PacWest reported Q1 earnings last week, which showed total deposits declined by $5 billion in the first quarter to $28.2 billion.\u00a0 But the bank said it was already seeing a rebound in deposits at the end of the quarter and into the beginning of Q2.\u00a0 The turmoil for PacWest comes after the Fed said on Wednesday that the U.S. banking system is sound and resilient.\u00a0 Qualcomm Falls On Weak Guidance Qualcomm (QCOM) shares are falling 7.5% in premarket trade after reporting fiscal Q2 results that were in line with expectations but issuing weak guidance.\u00a0 Here\u2019s how the chipmaker\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $2.15 as expected Revenue: $9.28 billion vs $9.1 billion expected Total revenue dropped 17% year over year, driven by a slowdown in demand for its cellphone chips.\u00a0 That drop is expected to continue with Qualcomm forecasting $8.5 billion in fiscal Q3 revenue, missing expectations of $9.14 billion.\u00a0 The company also forecast EPS of $1.80 vs analysts\u2019 estimates of $2.16. Moderna Reports Surprise Q1 Profit Moderna (MRNA) shares are up 1.8% ahead of the open after reporting a surprise profit in the first quarter.\u00a0 Here\u2019s how the pharmaceutical giant\u2019s results compared to analysts\u2019 estimates:\u00a0 EPS: $0.19 vs a loss of $1.77 per share expected Revenue: $1.86 billion vs $1.18 billion expected That profit surprise came despite lower demand for the company\u2019s Covid vaccine.\u00a0 Revenue was down 30% year over year.\u00a0 Moderna maintained its full-year guidance for around $5 billion in Covid vaccine revenue. Weekly Jobless Claims Climb Weekly jobless claims rose more than expected last week as the labor market continues to slowly tighten. The Labor Department reported 242,000 Americans filed initial unemployment claims.\u00a0 That was up by 13,000 from the previous week and higher than 236,000 expected.\u00a0 Continuing claims though fell by 38,000 to 1.81 million in the week ending April 22. Q1 Productivity Tumbles Worker productivity dropped more than expected in the first quarter.\u00a0 The Bureau of Labor Statistics reported productivity fell 2.7% annually vs expectations for a 1.9% decrease.\u00a0 Output during the quarter rose just 0.2% while hours worked rose 3%.\u00a0 And labor costs picked back up as well.\u00a0 Unit-labor costs rose 4.5% in Q1, up from 3.3% in Q4.\u00a0 Over the past 12-months, unit labor costs have risen 5.3%. Those rising wages have been a problem for the Fed in its fight against inflation. Trade Deficit Narrows The U.S. trade deficit narrowed in March as exports rose.\u00a0 The Commerce Department reported the deficit dropped by $6.4 billion to $64.2 billion.\u00a0 The decline came as exports rose by $5.3 billion to $256.2 billion.\u00a0 Imports fell by $1.1 billion to $320.4 billion.\u00a0 The goods deficit with China fell by $2.3 billion to $22.9 billion in March. In Case You Missed It The Federal Reserve hiked rates as expected by 25 basis points on Wednesday. That puts the federal funds rate in a range of 5% to 5.25%, the highest since August 2007. The FOMC statement seemed to hint this will be the last rate hike as it removed language about future policy tightening being appropriate. But Fed Chair Jerome Powell said in his press conference, \u201cA decision on a pause has not been made today.\u201d Powell emphasized that \u201cthe process of getting inflation back down to 2% has a long way to go.\u201d<\/p>\n","protected":false},"author":41,"featured_media":67704,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-67702","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/67702","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=67702"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/67702\/revisions"}],"predecessor-version":[{"id":67707,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/67702\/revisions\/67707"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/67704"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=67702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=67702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=67702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}