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European stocks slid amidst Credit Suisse unofficially downgrading to Credit Sus. But Switzerland, seemingly desperate to keep a namesake afloat, announced an hour ago it would aid the bank through concerns over its financial health.

Let’s keep it concise.

Market Headlines 👀

• US producer prices (PPI) unexpectedly fell in February to 4.4% (est. 5.2%, prev. 5.4%).

• Goldman Sachs (GS) has bought Silicon Valley Bank's (SIVB) bond portfolio.

• TikTok is considering divesting from parent company ByteDance if its deal with the US government fails.

• SVB (SIVB) creditors form a group in advance of possible bankruptcy.

• OpenAI's ChatGPT unveiled a new technology called GPT-4.

• Bank of America (BAC) received more than $15B in deposits following the failure of Silicon Valley Bank (SIVB).

• HSBC (HSBC) cut the base pay for promoted bankers by 25% ahead of the UK's new banking reform.

• PwC introduces AI chatbot for 4,000 lawyers to speed up work.

• Wells Fargo (WFC) files $9.5B mixed securities shelf.

• Bank of America (BAC) gets more than $15B in deposits after SVB fails.

• T-Mobile (TMUS) scoops up Ryan Reynolds-backed Mint Mobile for $1.35B.

• Goldman Sachs (GS) cuts its US GDP forecast after the banking crisis.

• US Treasury reviewing US banks’ exposure to Credit Suisse (CS).

• Credit Suisse (CS) bailed out by Swiss regulators.

  • Credit Suisse (CS) appeals to the Swiss central bank for show of support.

  • European shares slump the most in a year as Credit Suisse (CS) plunges.

• Speculators build $16B bearish bet on Europe's banks.

• Samsung (SSNLF) to invest $230B through 2042 in South Korea chipmaking base.

• US approves $31B merger of two big railroads. 

• US 30-Year mortgage rates retreat for the first time in five weeks.

• US retail sales dip 0.4% in February after buying burst in January.

• New York Empire State factory gauge weakens sharply in March, plunging to -24.6 (est. -8.0; prev. -5.8).

• US homebuilder sentiment (NAHB)unexpectedly rises for a third month, rising 2 points to a six-month high of 44.

• The Fed is considering tougher rules for midsize banks after the failures of Silicon Valley Bank (SIVB) and Signature Bank (SBNY).

• China's economy has rebounded from the Covid slump as spending has picked up.

• Argentina has surpassed 100% inflation as an economic recession looms.

Earnings 💸

• Adobe (ADBE)

  • EPS: $3.80 beats (exp. $3.68)

  • Revenue: $4.66B beats (exp. $4.62B)

Recap Around the Street 🧠

Credit Suisse (CS), the second-largest bank in Switzerland, just received a lifeline of liquidity from Swiss regulators. The bank has been hit by repeated scandals and financial losses in the last few years, causing a decline in investor confidence. The bank’s shares fell to a new low this week, leading to concerns that the banking crisis stemming from US regional banks had spread across the Atlantic.

The intensification of problems at Credit Suisse comes days after two major bank failures in the US, raising worries that institutions at the heart of business and commerce are struggling to cope with sharp increases in interest rates over the past year. Problems at Credit Suisse loomed large over Switzerland’s finance-heavy economy, with banking-sector assets around five times as big as those in the U.S.

Before regulators announced that they would provide liquidity to the bank, Credit Suisse shares slid 24%, and prices on its bonds fell to distressed levels. “Distressed” often indicates the possibility of a default.

Before the bailout announcement, European stocks slumped the most in a year as banking shares accelerated their declines. European investors will continue to fret over recession risks before tomorrow’s ECB rates announcement.

US producer prices unexpectedly fell today, signaling easing pressures. The Producer Price Index’s (PPI) surprising fall in February is its first decline since last November. This fall suggests that the inflationary pressures in the US economy may be easing.

February’s PPI fell by 0.2%, despite economists predicting a 0.4% increase. But, the core PPI, which excludes volatile items like food and energy, increased by 0.1%. Prices for goods decreased by 0.6%, while prices for services increased by 0.2%. Prices for food, energy and trade services were the biggest contributors to the decline.

Overall, the lower-than-expected producer prices could ease concerns about rising inflation. They may further support the Fed's decision to maintain easing its monetary policy.

US homebuilder sentiment unexpectedly rose for the third consecutive month in March, despite supply chain disruptions and rising costs. The National Association of Home Builders (NAHB) Index climbed one point to a seasonally adjusted level of 77, surpassing economists' predictions of a decline to 74. The surprising shift to a positive outlook was attributed to a strong demand for homes and mortgage rates retreating for the first time in five weeks.

However, builders also expressed concerns over ongoing supply chain disruptions, which have led to delays in construction and rising material costs. Lumber prices in particular have skyrocketed, putting a strain on builders' profit margins.

Nonetheless, the report suggests that the US housing market remains strong, driven by a robust demand for new homes and low borrowing costs.

Market Preview 🎞️

• Thursday: US Initial Jobless Claims, ECB Rate Decision, BOE releases inflation survey, Japan Trade Balance

• Thursday earnings: FedEx (FDX) & Dollar General (DG) earnings

• Friday: US Industrial Production, University of Michigan Sentiment, Eurozone CPI, OECD Publishes Interim Economic Outlook, Russia central bank (CBR) rate decision

• Friday earnings: Xpeng (XPEV) earnings

That’s all for today, folks! We’ll be back around the same time tomorrow with a curated list of important news, economic data and market highlights. 

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