CARR - Wall Street Breakfast Podcast: First Republic Stock Slides

2023-04-25 07:24:55 ET

Listen on the go! Subscribe to Wall Street Breakfast on Apple Podcasts and Spotify First Republic ( FRC ) stock slides after deposits sank by more than $70B in Q1. GM ( GM ) and Samsung ( SSNLF ) may join hands to set up EV battery plant in the U.S. U.S. gasoline prices ( UGA ) may have hit summer season peak , GasBuddy says. Learn more about these stocks with Seeking Alpha Premium .

This is an abridged transcript of the podcast

• Shares of First Republic are down premarket

• A deal between GM and Samsung SDI. The two are partnering to build an electric vehicle battery plant in the U.S.

• Good news for summer travel plans. GasBuddy is saying summer prices to fill up the tank may have already peaked

OUR TOP STORY

Shares of First Republic are down premarket following its earnings report.

Seeking Alpha Associate News Editor Kevin Curran has the update.

*Audio from Kevin*

I’ll leave a link in show notes for the FRC dedicated stock page on Seeking Alpha. That’s where you’ll find a host of information including analysis from market experts.

One of those articles is by Stone Fox Capital. Stone Fox Capital is the investing groups leader for Out Fox the Street on Seeking Alpha.

The article is entitled “First Republic: Decent Q1 Earnings But Rising Funding Costs Pose Headwind.”

In the article they rate FRC a hold saying that the stock won’t rally until First Republic solves the business model issue.

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When you checkout the catalyst watch article on seeking alpha for this week…i’ll leave a link in show notes for you…you’ll see several notable companies due to report earnings today.

Some companies are reporting premarket and Seeking Alpha has you covered. I’m including earning link for Pepsi, GM, GE, as well as a preview of Alphabet and Verizon.

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A cable news shakeup Monday.

Fox News (NASDAQ: FOX ) and talk show host Tucker Carlson "agreed to part ways.”

Carlson's final show was Friday.

This follows on the heels of the hefty $788M settlement between Fox News and Dominion Voting Systems' over a defamation lawsuit against the network.

Also out, Don Lemon from CNN (NASDAQ: WBD ).

Lemon had been with the network for 17 years. He was let go just hours after finishing his morning show on Monday.

Lemon put out one narrative of how the firing went down but CNN hit back saying Lemon’s version of the story was not true.

Meanwhile, conservative-focused video platform Rumble (NASDAQ: RUM ) rose 5.9% Monday, marking its biggest gain in a month,

Rumble stock immediately started rising as the news fed new speculation that the site could benefit from powerful new additions.

NOW MORE ON THE MARKET

Continuing the uncertain trading that marked most of last week, the major U.S. equity averages finished with a mixed performance on Monday.

The Nasdaq ( COMP.IND ) closed -0.3%, the S&P 500 ( SP500 ) ended +0.1% and the Dow ( DJI ) finished +0.2%.

Six of the 11 S&P sectors ended the day higher. Energy led the advance, climbing by 1.5%. Utilities, Materials and Health Care posted modest gains. Real Estate, Tech and Financials slumped.

Market expert Ahan Vashi told Seeking Alpha, "Big tech giants have led the year-to-date rally in equities; however, it's been driven solely by trading multiple expansion, with earnings estimates for 2023 headed in the wrong direction." Vashi went on to say that, "If even some of these names fail to appease investors' raised expectations, we could see volatile market swings to the downside in the upcoming week or two."

Turning to the fixed income market, mild buying sent Treasury yields lower. The 10-year yield ( US10Y ) fell 6 basis points to 3.51%, while the 2-year yield ( US2Y ) retreated 5 basis points to 4.14%.

MORE OF OUR TOP STORIES

It’s official. President Biden has launched his 2024 campaign with a video entitled, " Let's Finish the Job ."

A rematch between Biden and former President Trump seems to be likely but the list of republican challengers is growing.

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Pharma giants Novo Nordisk ( NVO ) and Eli Lilly (NYSE: LLY ) are eyeing a potential sales boom.

The companies have joined patient advocates and other organizations to lobby Congress to win Medicare coverage for weight loss agents.

Novo’s ( NVO ) FDA-approved weight loss therapy costs over $10K per year without insurance.

The Wall Street Journal reported Monday, citing congressional records,The company has pushed for Medicare coverage for weight-loss treatments for a decade.

Meanwhile, Lilly ( LLY ), which is planning to expand its diabetes therapy for weight loss this year , has joined the lobbying efforts in 2021.

WW International (NASDAQ: WW ), which recently acquired Sequence, a telehealth provider focused on weight loss agents , has joined LLY ( LLY ) and Novo ( NVO ) as members of the Obesity Care Advocacy Network, a group lobbying for Medicare coverage for weight-loss drugs.

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General Motors (NYSE: GM ) and Samsung SDI ( OTCPK:SSNLF ) are likely to enter a joint venture to build an electric vehicle battery plant in the U.S.

According to Reuters, the location of the plant has not yet been disclosed but further details could be announced today.

GM ( GM ) said last year that it aims at building 400K EVs in North America from 2022 through mid-2024 and increase capacity to 1M units annually in 2025.

In August of last year, GM ( GM ) and LG Energy Solution were considering a site in New Carlisle, Indiana, for a fourth U.S. battery plant, however, the plan got canceled .

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Carrier Global (NYSE: CARR ) is in advanced talks to buy German industrial manufacturer Viessmann for more than $10 billion including debt.

This was reported by the Wall Street Journal Monday, citing people familiar with the matter.

The cash-and-stock deal may be announced as early as this week unless the companies break off negotiations.

Carrier ( CARR ) makes air conditioners and other kinds of heating and cooling equipment.

Viessmann makes equipment such as boilers, refrigerated cabinets and other cooling technology.

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Vyant Bio (NASDAQ: VYNT ) said its board had decided to voluntarily delist its securities from The Nasdaq Capital Market.

The company said it had begun delisting and filed a Form 25 with the Securities and Exchange Commission, which is expected to become effective on or about May 14.

The Company sees its common stock quoted on the Pink Open Market operated by OTC Markets Group under the symbol “VYNT” starting on or about May 15.

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And finally if you plan to take a road trip this summer there’s good news.

According to GasBuddy, gasoline prices at the pump fell last week for the first time in a month and may have already reached their summer season peak,

The average price for regular unleaded gas in the U.S. edged lower to $3.64/gal. According to GasBuddy that's up 22.8 cents from a month ago but down 46.4 cents from a year ago.

Patrick De Haan is the head of petroleum analysis at GasBuddy. He said Monday that gas prices at the pump typically peak between May and June, and "with the oil market showing significant cracks in strength, we may have seen the peak in the national average already occur, a few weeks earlier than average.”

While prices could rise this summer if a major hurricane hits sensitive infrastructure, "it appears the odds that the national average will miss the $4 per gallon mark are rising."

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Now let’s take a look at the markets as of 6:20 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are pointing lower. The Dow is down 0.4%. The S&P 500 is down 0.4% and the Nasdaq is also down 0.4%. Crude oil is down 0.7% at more than $78 a barrel. Bitcoin is down 0.5% at $27,301.

In the world markets, the FTSE 100 is down 0.4% and the Dax is up a small fraction.

On today’s economic calendar, at 10am new home sales and at 1pm money supply.

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