Credit Suisse and banking crisis, Fed meeting, Nike earnings top week ahead
The Federal Reserve may hike rates Wednesday for the ninth straight time
Investors should not throw the baby out with the bath water in SVB collapse aftermath: Lori Calvasina
Lori Calvasina, RBC Capital Markets' head of U.S. equity strategy, discusses the state of the U.S. economy in the aftermath of the Silicon Valley Bank collapse and ahead of the Federal Reserve's March meeting.
Investors are coming off a turbulent week after the collapse of Silicon Valley Bank jolted financial markets and threw into question the future of a handful of smaller, regional banks. In the coming week, uncertainty remains heading into the Federal Reserve’s March meeting.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44782 | -128.65 | -0.29% |
| SP500 | S&P 500 | 6047.15 | +14.77 | +0.24% |
| I:DJI | DOW JONES AVERAGES | 44782 | -128.65 | -0.29% |
U.S. stocks ended Friday sharply lower. But the week was mixed with the Dow Jones Industrial Average being little changed, while the S&P 500 added 1.4% and the Nasdaq Composite 4.4%.
Cyrptocurrency will also be in focus after Bitcoin, the largest crypto by market value, crossed above the $26K level as investors rotated out of stocks and bonds amid the banking melee.
FOX Business takes a look at the biggest market events in the coming week.
MONDAY
The solidity of the U.S. banking system remains a top concern for investors as the future of several firms hangs in the balance.
Credit Suisse is reportedly in talks with several European rivals over its assets as its stock tumbled to fresh record lows last week. Its problems were mounting even before the collapse of Silicon Valley Bank.
THE FDIC AND YOUR MONEY: WHAT'S PROTECTED & WHAT'S NOT
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CS | NO DATA AVAILABLE | - | - | - |
In the U.S., regional banks remain under pressure after First Republic was provided $30 billion in deposits by 11 of the largest American banks. However, that did little to stem investor worries. Shares lost 72% for the week.
First Republic
The contagion stemmed from the collapse of SVB, which was seized by the FDIC last week. The firm officially declared bankruptcy Friday, and its assets, as well as those of Signature Bank, which was also taken over by regulators, are up for grabs, according to FOX Business.
In earnings news, Foot Locker is set to report. The athletic retailer is considered a decent gauge of how Nike is performing. It reports Tuesday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FL | FOOT LOCKER INC. | 25.12 | -0.01 | -0.06% |
| NKE | NIKE INC. | 79.09 | +0.72 | +0.92% |
Additionally, Chinese President Xi Jinping plans to visit Russia. While a date was unconfirmed, the meeting may take place as early as this week.
Russian President Vladimir Putin and his Chinese counterpart Xi Jinping pose during a meeting. (Alexei Druzhinin/TASS via Getty Images / Getty Images)
Tuesday
The Federal Reserve will kick off its meeting with trading expected to be light heading into a decision on interest rates Wednesday.
Despite the market tumult, 62% of investors expect the policymakers to continue hiking rates, which would mark the ninth straight increase. Thirty-eight percent expect no change, according to CME's FedWatch.
Judy Shelton, an Economist and Independent Institute senior fellow, made the case for the Fed to pause during a Friday interview on FOX Business with Larry Kudlow.
WATCH: SHELTON MAKES FED PAUSE CASE TO KUDLOW
In other economic news, existing home sales will be released at 10 a.m. ET.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TOL | TOLL BROTHERS INC. | 164.75 | +0.66 | +0.40% |
| LEN | LENNAR CORP. | 174.14 | +0.79 | +0.46% |
| DHI | D.R. HORTON INC. | 169.44 | +0.76 | +0.45% |
| KBH | KB HOME | 82.84 | +0.15 | +0.18% |
Adobe will hold its annual investor day at 2:30 pm ET.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ADBE | ADOBE INC. | 516.20 | +0.27 | +0.05% |
The Supreme Court is expected to hear arguments on a case involving Coinbase and arbitration over a theft on the site.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| COIN | COINBASE GLOBAL INC. | 296.20 | -14.78 | -4.75% |
WEDNESDAY
Markets will be watching the Fed's decision due at 2 p.m. ET, followed by Chairman Jerome Powell's press conference.
The S&P 500, the broadest measure of stocks, is up slightly for the year.
Along with the inflation situation, the banking crisis that emerged in the last week will be front and center for investors.
S&P 500
Questions at hand remain how closely the Fed should be involved if more rescues are needed and how Silicon Valley Bank escaped the monitoring by banking officials, which falls under the Federal Reserve Bank of San Francisco led by President Mary Daly.
In earnings news, Petco, Chewy and KB Home are all set to report.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WOOF | PETCO HEALTH AND WELLNESS | 4.27 | -0.03 | -0.70% |
| CHWY | CHEWY INC. | 33.41 | +0.08 | +0.24% |
| KBH | KB HOME | 82.74 | -0.12 | -0.14% |
Thursday
In earnings, Red Lobster parent Darden, Carnival Cruise Lines and General Mills are all set to report results.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DRI | DARDEN RESTAURANTS INC. | 167.68 | +3.06 | +1.86% |
| CCL | CARNIVAL CORP. | 24.88 | -0.46 | -1.82% |
| GIS | GENERAL MILLS INC. | 64.97 | +0.89 | +1.39% |
| KBH | KB HOME | 79.40 | +1.61 | +2.07% |
Data on new home sales will be released. Mortgage fates fell slightly to 6.6% for a 30-year fixed product last week ahead of the key spring selling season.
HOUSING MARKET ABOUT TO ENTER SWEET SPOT
Virgin Orbit, the company launched by Richard Branson, may restart operations after announcing a pause last week to conserve cash.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| VORB | NO DATA AVAILABLE | - | - | - |
Richard Branson and crew experience weightlessness (Virgin Galactic)
Friday
As the week winds down, durable goods will be released on Friday. We also hear from Federal Reserve Bank of St. Louis President James Bullard, who may provide additional insight on the thinking of policymakers coming off their March meeting.
James Bullard, president and chief executive officer of the Federal Reserve Bank of St. Louis. (Luke MacGregor/Bloomberg via Getty Images / Getty Images)
And Walmart is expected to close the remaining stores within Portland's city limits due to weak financial performance, and rising crime may have been a factor.
WALMART TO CLOSE PORTLAND STORES
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WMT | WALMART INC. | 92.50 | +0.62 | +0.67% |