Axel Lehmann, Chairman of Credit Suisse Group AG, speaks at the Institute of International Finance (IIF) Annual Members Meeting in Washington, DC, Friday, October 14, 2022.
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Find out which companies are making headlines before the bell.
Credit Suisse – Shares of Credit Suisse fell 21.5% after the company’s biggest backer, the Saudi National Bank, said it would no longer provide it with financial aid. Credit Suisse and several other European banks, including Societe Generale, Italy’s Monte dei Paschi and UniCredit, were halted due to falling prices.
Bank of America, Morgan Stanley, Wells Fargo – Shares of major financial companies were down early Wednesday as the fall of Credit Suisse sent ripples through the global banking sector. Bank of America lost 2.9%, Morgan Stanley fell 3.2% and Wells Fargo fell almost 4.2%.
Lennar – Shares of the homebuilder rose more than 1% in premarket trading after Lennar beat estimates on top and bottom results for its fiscal first quarter. Lennar reported $2.06 in earnings per share on $6.49 billion in revenue. Analysts polled by Refinitiv had expected $1.55 in earnings per share on $5.93 billion in revenue. Home deliveries are up 9% year over year, but gross margin and new orders are down.
PacWest Bancorp, Comerica, KeyCorp — Several regional banks led Wednesday’s slide after rebounding on Tuesday. PacWest and Comerica lost 7.7% and 3.4% respectively. KeyCorp’s share price fell 1.4%, Regions Financial 4.2% and Zions Bancorp 5.5%. Shares of San Francisco-based First Republic bucked the trend, gaining 3.8%.
Royal Caribbean – Shares of the cruise line fell 2.8%. The company recently refunded customers after it mistakenly offered a non-existent “Premier Pass” on its website. The company also announced that it would expand its sales team. Rival cruise lines were also down.
– CNBC’s Hakyung Kim and Jesse Pound contributed reporting.