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Credit Ratings

KRE

NYCB

Shares of New York Community Bancorp (NYCB) plummeted over 10% to below $4, reaching a low not seen since March 1997, amid concerns over its commercial real estate loan exposure. Bank of America and JPMorgan downgraded NYCB, citing risks and regulatory scrutiny, while Piper Sandler remained bullish. NYCB stated its liquidity is ample, despite downgrades from Fitch and Moody's. The SPDR S&P Regional Banking ETF (KRE) also fell by 1.6%, marking its potential sixth negative session in seven days.

Portfolio Pulse from Piero Cingari

February 07, 2024 | 4:32 pm

NYCB

New York Community Bancorp, Inc. (NYSE:NYCB) saw its shares rise in premarket trading on Wednesday, following a 22% drop on Tuesday due to a Bloomberg report about a forced dividend cut and increased provisioning. The slump was further exacerbated by Moody's downgrading the bank's ratings. However, the bank has since reassured investors by highlighting its strong liquidity position and the steps it has taken to enhance its risk management framework.

Portfolio Pulse from Shanthi Rexaline

February 07, 2024 | 1:01 pm

CTSH

NYCB

PLUS

SNAP

VFC

Snap Inc. reported mixed Q4 results with a revenue miss and a weak Q1 revenue forecast, leading to a 31.3% drop in pre-market trading. Other stocks like fuboTV, Diversified Energy, New York Community Bancorp, Cognizant, KKR Real Estate Finance Trust, Nyxoah, V.F. Corporation, ePlus, Weibo, and Pinterest also saw pre-market declines due to various factors including earnings reports and credit downgrades.

Portfolio Pulse from Avi Kapoor

February 07, 2024 | 10:13 am

ICLN

TSLA

Short-seller Jim Chanos criticized Tesla CEO Elon Musk's proposal for a carbon tax as a measure against climate change, labeling Musk as 'Subsidy King' and 'new darling of the Right'. Musk advocates for a carbon tax to combat climate change, citing a $5.3 trillion annual carbon subsidy per the IMF. Chanos, known for his bets against Tesla and Enron, recently closed his hedge fund. The debate highlights differing views on addressing climate change and the role of electric vehicles and renewable energy.

Portfolio Pulse from Shanthi Rexaline

February 05, 2024 | 6:24 am

BLK

JPM

Financial experts including Bill Gross, BlackRock, and Jamie Dimon provided insights on the U.S. economy, discussing a looming debt crisis, bullish views on U.S. stocks, and potential unemployment rate increases. Gross compared the U.S.'s $34 trillion debt to climate change impacts, predicting inflation due to annual deficits. BlackRock upgraded U.S. stocks to 'overweight', anticipating an economic soft landing and interest rate cuts. Mizuho's Dominic Konstam projected unemployment could double by year-end. Peter Schiff criticized the Federal Reserve's inflation policy, and Dimon warned of a global market 'rebellion' due to U.S. debt levels.

Portfolio Pulse from Benzinga Neuro

February 04, 2024 | 11:08 am

SPY

Fed Chair Powell indicated a likelihood of reducing interest rates later this year, but emphasized the economic outlook's uncertainty and that progress on inflation is not guaranteed. He also stated readiness to maintain the current policy rate for a longer period if necessary.

Portfolio Pulse from Benzinga Newsdesk

January 31, 2024 | 7:36 pm

Mastercard Inc (NYSE:MA) is set to report Q4 earnings on Jan. 31 with expectations of $3.08 EPS and $6.48 billion in revenues. The stock has reached all-time highs, up 20% over the past year, slightly behind Visa Inc's (NASDAQ:V) 21.20% gain. Visa recently exceeded Q1 earnings expectations but saw a 2.5% stock decline post-announcement due to weaker-than-expected payment volumes. Analysts will focus on Mastercard's margin profile and positioning against Visa. Mastercard has a stable A+ credit rating and a history of dividend growth, but faces challenges in 2024 with potentially limited stock upside. Analyst consensus rates MA as a Buy with a target of $417.44, while recent estimates range from $462 to $510.

Portfolio Pulse from Surbhi Jain

January 30, 2024 | 6:09 pm

CMPS

GHRS

IXHL

PSIL

A new study suggests suggestibility plays a role in the antidepressant effects of psilocybin therapy. The EU has allocated $7M for psychedelic research for various disorders. In Australia, the first psychedelic-assisted medical treatments in 50 years were provided. Incannex Healthcare's CEO discussed the company's role in psychedelic-assisted therapies on the Benzinga Psychedelics Podcast. Psychedelics stocks showed varied performance, with COMPASS Pathways, GH Research, and Incannex Healthcare closing higher, while others like Seelos Therapeutics and Enveric Biosciences closed lower. The AdvisorShares Psychedelics ETF (PSIL) closed at $1.43.

Portfolio Pulse from Lara Goldstein

January 27, 2024 | 3:00 pm

CLVT

Clarivate has initiated a refinancing process for its Term Loan B credit facility due in 2026. The goal is to extend the maturity to 2031 and combine it into a new term loan amounting to $2.2 billion.

Portfolio Pulse from Benzinga Newsdesk

January 22, 2024 | 12:25 pm

XLRE

Cantor Fitzgerald CEO Howard Lutnick predicts a grim future for the U.S. real estate market, with up to $1 trillion in commercial real estate loan defaults expected within the next two years. Despite potential slight rate decreases, Lutnick believes real estate equity and REITs will face significant challenges, with many defaults and a 'generational change' in real estate. Approximately $2.77 trillion of commercial real estate debt is due to mature between 2023 and 2027, with refinancing difficulties anticipated due to high interest rates and declining property values. Morgan Stanley and Fitch reports support the view of a challenging environment for commercial real estate.

Portfolio Pulse from Shanthi Rexaline

January 21, 2024 | 10:15 pm