NYCB - Why These Bank Stocks Are Moving in Opposite Directions
2023-03-20 09:18:49 ET
Wall Street hasn't been sure what to think about what's been happening in the banking sector. On one hand, bank failures of this size haven't happened since the financial crisis in 2008, and that was a tumultuous time full of fear about whether the global financial system could withstand the shock. Things don't seem as bad right now, but problems in Europe have nevertheless made some market participants less than pleased with what's been happening. Stock index futures were largely flat Monday, with the S&P 500 (SNPINDEX: ^GSPC) poised to pick up a point or two based on futures contracts.
You can see some of the uncertainty in the fact that even bank stocks aren't all behaving the same. First Republic Bank (NYSE: FRC) continued to lose ground as the Wall Street community had further concerns about the bank's rescue last week. However, New York Community Bancorp (NYSE: NYCB) shares actually moved higher on news that might come as a surprise to some investors. Read on to learn more about why there are some disparities in stock performance within the banking sector.
First Republic saw its stock fall another 17% in premarket trading on Monday. That followed a 33% decline on Friday, and the further descent came as investors reacted to the latest news about the beleaguered banking institution.
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Why These Bank Stocks Are Moving in Opposite Directions