The first citizens held a great bargain

An exterior view of First Citizens Bank headquarters on March 27, 2023 in Raleigh, North Carolina.

An exterior view of the First Citizens Bank headquarters in Raleigh, North Carolina on March 27, 2023. Melissa Sue Gerrits | Getty Images News | Good pictures

This report is from today’s CNBC Daily Open, our new, international market newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, wherever they are.

As you see? You can subscribe Here.

Investors heave a sigh of relief, and it’s all about the banks.

First Citizens’ purchase of SVB’s assets is a bargain in monetary terms. More importantly, it signaled to the markets that despite SVB’s financial problems, there was still value in SVB’s reputation and relationship with its customers.

There is hope, then, of reviving a dead bank — something that can only happen in an environment conducive to such miraculous feats.

Another troubled bank, First Republic, rallied after reports that US authorities were considering giving the bank more time to boost liquidity. It may not take much longer, thanks to £30 billion in deposits pledged by a coalition of banks, but the outflow of deposits from smaller banks to larger firms has slowed in recent days, sources told CNBC’s Hugh Sun. .

KeyCorp, which has fallen about 60% since the start of the banking crisis, has a 68.6% chance of rising, according to Citi, which upgraded KeyCorp to buy from neutral.

The optimism was reflected in the SPDR S&P Regional Bank ETF ( KRE ), which rose about 0.87%. The major indexes — except for the Nasdaq Composite (more on that in a moment) — also closed the day in the green.

The Dow rose 0.6% and the S&P gained 0.2%. However, the Nasdaq composite fell 0.5%.

Tech stocks, which have posted sterling gains over the past two weeks as banks have struggled, are now facing difficulties of their own. Alphabet fell 2.83%, Apple lost 2.8% and Meta fell 1.5%.

Charles Schwab’s Liz Ann Saunders noted that the S&P 500 information technology sector’s valuation has risen more than 30% relative to the companies’ performance. This isn’t a sign that we’re returning to the epidemic days of high-tech valuations, but it’s something to keep an eye on as the banking crisis (hopefully) is contained.

Register Here Get this report sent straight to your inbox every morning before the markets open.

“Friend of animals everywhere. Coffee maven. Professional food trailblazer.

Twitter buff.”

Tags:

bloom-and-wild listed on couponmatrix.ukchaos-cards listed on couponmatrix.ukmaha-home listed on couponmatrix.uksaga-travel-insurance listed on couponmatrix.ukunder-armour listed on couponmatrix.ukwhitbread-inns listed on couponmatrix.uk
bloom-and-wild listed on couponmatrix.ukShow you care with a beautiful bouquet from Bloom & Wild. If you want a quick, simple way to send flowers - be it a colourful collection of peonies and roses or larger blends of white lilies, altitude roses and lisianthus - you'll find the perfect pick with this great selection. Make the most of a Bloom & Wild voucher from us and save on a gorgeous bunch for that special someone.
chaos-cards listed on couponmatrix.ukLive, breathe and sleep gaming? Get acquainted with Chaos Cards and get your trading card collection on point! You could slice the price of all manner of cards, from the classic Pokemon to the mighty Yu-Gi-Oh, when you put one of our Chaos Cards discount codes to the test. Don’t forget to browse the board game, dice game and role-playing departments too and banish boredom from every raising its head without breaking the bank.
maha-home listed on couponmatrix.ukUpgrade your home setup with Maha Home and its outstanding selection of kitchenware, home goods and electricals. Based in London but available nationwide, expect the finest craftsmanship available at the lowest possible price – especially when you shop with the latest Maha Home discount code. With everything from travel bags to decorating tools and garden equipment under their banner, Maha Home has all the essentials you need to turn your empty house into your dream home.
saga-travel-insurance listed on couponmatrix.ukThere’s nothing better than heading off on holiday, but whilst travelling is exciting, there’s also an element of risk being so far away from home. With Saga, you can easily cover yourself for any mishaps whilst away so you can properly relax. Pick up your Saga Travel Insurance discount code to save on your insurance package and keep more money to enjoy whilst travelling. Whether you lose your passport or get into an accident, the Travel Insurance team at Saga are here for you.
under-armour listed on couponmatrix.ukLooking for high performance sportswear? Look no further—Under Armour is the holy grail of innovative workout gear. With trainers and high tech training gear for both men and women, Under Armour has been inspiring athletes since the ‘90s. Make the most of an Under Armour discount code to cut the cost of your next gym kit—whether you’re hitting the squat rack or training for a marathon, UA will help you smash those goals.
whitbread-inns listed on couponmatrix.ukIf you’re after a tasty local ale, mouthwatering food and service with a smile, look no further - you’ll enjoy a warm welcome at Whitbread Inns! With spots all over the country, there’s bound to be one near you - pop in today to enjoy some good old fashioned hospitality. Make the most of a Whitbread Inns voucher to save on your next pint or plate, and get ready to make yourself at home!