Streetbeat News

Credit Ratings

CRL

DIS

KBE

UPS

WYNN

Investor sentiment in the US has declined following Moody's downgrade of several US banks' credit ratings. This led to a fall in US stocks, with the SPDR S&P Bank ETF (KBE) dropping around 1.3% and shares of The Goldman Sachs Group, Inc. (GS) falling over 2%. United Parcel Service Inc (UPS) reported mixed Q2 results and issued FY23 revenue guidance below estimates. Investors are awaiting earnings results from Charles River Laboratories International, Inc. (CRL), The Walt Disney Company (DIS), and Wynn Resorts, Limited (WYNN).

Portfolio Pulse from Lisa Levin

August 09, 2023 | 6:10 am

BTCUSD

DOGEUSD

ETHUSD

Major cryptocurrencies including Bitcoin, Ethereum, and Dogecoin saw significant gains on Tuesday amid optimism about the prospects of a spot Bitcoin ETF being approved by the SEC. Ark Invest CEO Cathie Wood and Galaxy Digital CEO Mike Novogratz expressed their optimism about the ETF. PayPal is set to launch a stablecoin tied to the U.S. dollar. The global crypto market capitalization stands at $1.19 trillion, a 2.11% increase in the last day. Stocks declined on Tuesday as the banking sector received a downgrade from Moody's.

Portfolio Pulse from Mehab Qureshi

August 09, 2023 | 2:40 am

IYF

MTB

WBS

XLF

The Federal Reserve Board has unveiled details of its program to supervise novel activities in the banks it oversees, including technology-driven collaborations with non-banking entities, and activities involving crypto-assets and blockchain technology. The program aims to cultivate the advantages of financial innovation while managing risks to ensure the stability and integrity of the banking system. The board also provided guidelines for state banks supervised by the Federal Reserve to adhere to before engaging in specific dollar token or stablecoin activities. In related news, Moody's downgraded the ratings of 10 U.S. small and mid-sized banks, including M&T Bank Corp. (NYSE:MTB) and Webster Financial Corporation (NYSE:WBS), causing a drop in shares of U.S. banks.

Portfolio Pulse from Michael Cohen

August 08, 2023 | 9:32 pm

BTCUSD

QQQ

Bitcoin (BTC) surged by over 2.6% during Tuesday's trading session, marking its strongest daily gain since July 13. The cryptocurrency's rise came despite a 'risk-off' climate impacting U.S. banks, following a wave of downgrades and warnings from Moody's. Bitcoin has historically shown positive reactions when concerns about the stability of traditional banks arise. The cryptocurrency is testing two important resistances: the $30,000 mark and the 50-day moving average. Bitcoin has risen 80% this year, doubling the performance of the Invesco QQQ Trust (QQQ).

Portfolio Pulse from Piero Cingari

August 08, 2023 | 8:46 pm

Shares of Citigroup Inc (NYSE:C) are trading lower after Moody's cut the credit ratings of 10 banks and placed others under review for potential downgrades. The negative credit rating actions on regional banks can lead to a broader negative sentiment within the financial sector, affecting all financial institutions, including investment banks like Goldman Sachs. Moody’s action comes amid worries about rising financing costs, possible weaknesses in regulatory capital, and escalating risks linked with commercial real estate lending.

Portfolio Pulse from Henry Khederian

August 08, 2023 | 6:23 pm

AAPL

AMZN

GOOG

META

MSFT

NVDA

STT

TFC

TSLA

USB

Apple Inc's (AAPL) stock performance is at a critical junction that could impact the entire stock market. The company's fundamentals are deteriorating, with three quarters of declining revenues expected. Moody's has cut credit ratings on ten U.S. banks due to office real estate exposure and higher funding costs, and may downgrade ratings of major U.S. lenders such as U.S. Bancorp (USB), Bank of New York Mellon Corp (BK), State Street Corp (STT), and Truist Financial Corp (TFC). Chinese exports have fallen by 14.5% YoY, indicating falling consumer demand. Negative money flows are observed in AAPL, Tesla Inc (TSLA), Microsoft Corp (MSFT), Meta Platforms Inc (META), Amazon.com, Inc. (AMZN), NVIDIA Corp (NVDA), and Alphabet Inc Class C (GOOG).

Portfolio Pulse from The Arora Report

August 08, 2023 | 5:58 pm

AAPL

AMD

NVDA

SSNLF

TSM

Nvidia Corp's stock is trading lower along with its peers after Moody's downgraded its credit ratings of 10 U.S. banks and placed six others under review for potential downgrades. Nvidia launched the GH200 Grace Hopper platform based on a new Grace Hopper Superchip with the world's first HBM3e processor. Taiwan Semiconductor Manufacturing Company Ltd failed to keep up with Nvidia's demand for AI chip packaging, signaling an opportunity for Samsung Electronics Co, Ltd. Nvidia, along with Apple Inc, Samsung, and Intel Corp, are eyeing stakes in Softbank Group Corp backed British chip designer Arm. Advanced Micro Devices, Inc is considered another beneficiary of AI chips due to Nvidia's demand-supply anomalies.

Portfolio Pulse from Anusuya Lahiri

August 08, 2023 | 5:04 pm

Goldman Sachs Group Inc (NYSE:GS) shares are trading lower by 2.8% after Moody's cut the credit ratings of 10 banks and placed others under review for potential downgrades. This has led to a broader negative sentiment within the financial sector, affecting all financial institutions, including investment banks like Goldman Sachs. The concerns are due to worries about rising financing costs, possible weaknesses in regulatory capital, and escalating risks linked with commercial real estate lending.

Portfolio Pulse from Henry Khederian

August 08, 2023 | 4:28 pm

KBE

KRE

SPY

XLF

Moody's Managing Director of Financial Institutions has stated that bank downgrades and rating reviews are driven by profit outlook. The downgrades reflect earnings that were 'as good as it gets' in Q2. Banks face challenges from rising rates, potential recession, and funding costs.

Portfolio Pulse from Happy Mohamed

August 08, 2023 | 3:42 pm

ABNB

Airbnb shares are trading lower due to overall market weakness following Moody's downgrade of several US banks' credit ratings. This has led to market uncertainty and negatively impacted consumer discretionary stocks.

Portfolio Pulse from Bill Haddad

August 08, 2023 | 3:33 pm