XM - 4 stocks to watch on Monday: Tesla Roku and more

2023-03-13 08:15:46 ET

As stocks get ready to begin trading on Monday, Wall Street will continue to react to the aftermath of the Silicon Valley Bank collapse that took place late last week. Over the weekend, the Federal Reserve created a lending facility for banks after the SVB failure. Meanwhile, the perceived chances of a Fed pause at its next policy meeting have skyrocketed since the bank unraveled.

Here are some stocks to watch on Monday:

• Tesla ( TSLA ) received a downgrade from Wolfe Research, which cut its rating on Elon Musk's EV maker to Peer Perform from Outperform . The firm noted that the collapse of Silicon Valley Bank could tighten credit availability and complicate the macro situation.
• Roku ( NASDAQ: ROKU ) dipped in premarket trading after the streaming TV company revealed that it had sizable deposits with Silicon Valley Bank. The firm reported that about 26% of its cash was with SVB, or about $487M. ROKU noted that these funds were "largely uninsured" and it "does not know to what extent the Company will be able to recover its cash on deposit at SVB."
• Qualtrics ( XM ) advanced in premarket trading, rising almost 7% after the company agreed to sell itself to private equity firm Silver Lake and the Canada Pension Investment Board. The deal calls for a purchase price of $18.15 per share in cash, equating to a total of about $12.5B.
• Reacting to a change in the S&P 500, Insulet ( PODD ) climbed 7% before the opening bell. The maker insulin delivery systems will join the S&P 500 prior to the open on March 15, replacing SVB Financial Group ( SIVB ), which is no longer eligible after Silicon Valley Bank was taken over by U.S. regulators.

Looking ahead to key inflation data due out later this week, Seeking Alpha contributor Mott Capital Management said the CPI report could "deliver a huge surprise" as the swaps market and estimates from the Cleveland Fed " see an upside surprise being delivered ."

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