Thursday, March 16, 2023

Banks With Highest Uninsured Deposit Balances

Company         Symbol     Uninsured deposits / domestic deposits
(higher is riskier)
Loans and held-to-maturity securities / total deposits
(higher is riskier)
YTD % change
Bank of New York MellonBK96.5%31.2%-0.1%
SVB Financial GroupSIVB93.9%94.4%-53.9%
State StreetSTT91.2%40.1%-1.8%
Northern TrustNTRS83.1%54.5%-3.1%
HSBC HoldingsHSBA72.5%47.4%11.9%
First Republic BankFRC67.7%110.6%-69.1%
East West BancorpEWBC65.9%91.1%-13.9%
Sources: S&P Global Market Intelligence

Friday, March 10, 2023

Silicon Valley Bank collapses after failing to raise capital

Regional banks are feeling the heat today after SVB Financial's (SIVB) liquidity crunch led to the bank's collapse.

(charts Fri March 10, 23)

Banking stocks continued to sell off after SVB Financial's (SIVB) liquidity crunch led to the bank's collapse. Regulators Friday shut down the parent company of Silicon Valley Bank after a run on what had been the bank of choice for tech venture capitalists. Deposits dwindled as rising interest rates dried up deals and clients burned through more cash.

SVB's collapse is the second largest FDIC-insured bank to fail after Washington Mutual's collapse in 2008, according to Dow Jones Market Data. SVB had $212 billion in assets; Washington Mutual had $307 billion, or $420 billion adjusted for inflation.

Monday, January 30, 2023

Nasdaq 100 on pace for best January since 1999

The Nasdaq 100 Stock Index is on pace for its best January since 1999 despite warning signs from the likes of Microsoft Corp. and Intel Corp. and another expected interest-rate hike from the Federal Reserve. The Cboe Volatility Index sank within striking distance of a 10-month low on Friday, signalling less angst in the market. Meanwhile, options trading on megacaps last week showed demand hasn’t jumped for protection against a selloff.

Saturday, January 28, 2023

Highest Yielding Dividend Aristocrats

Three stocks, C.H. Robinson Worldwide (CHRW), Nordson (NDSN) and J.M. Smucker (SJM), will join the storied S&P 500 Dividend Aristocrats on Feb. 1.

Those paying highest yields, with newest index additions shown for comparison.

SECTORYears of dividend increasesDividend yield
VFVFCConsumer Discretionary506.8%
Walgreens Boots AllianceWBAConsumer Staples475.3
3M CompanyMMMIndustrials605.3
International Business MachinesIBMInformation Technology274.7
Realty IncomeOReal Estate284.4
T. Rowe Price GroupTROWFinancials364.1
Essex Property TrustESSReal Estate284.1
Franklin ResourcesBENFinancials414.0
AbbVieABBVHealth Care504.0
J.M. Smucker *SJMConsumer Staples252.7
C.H. Robinson Worldwide*CHRWIndustrials252.3
Sources: S&P Global Market Intelligence, IBD, * — new index additions

Friday, January 6, 2023

Emerging-market stocks rise to six-month high vs S&P 500

  • MSCI Index hands 19% excess returns over S&P 500 since October
  • China reopening, weaker dollar key reasons for outperformance
Emerging-market stocks extended their lead over US shares in the early days of the new year, with the equity benchmark rising to a six-month high against the S&P 500 Index.

The MSCI Emerging Markets Index has advanced 3% this week, compared with a 0.8% decline in the US gauge, continuing a turnaround that began in recent months following its worst annual losses since the 2008 global financial crisis. China’s reopening, a softer dollar, and signs of easing global inflation have been spurring gains, leading the gauge to rise Friday for a fourth day to its highest since August.