Yahoo Finance Trending tickers: Credit Suisse | First Republic | Coca-Cola | Glencore | Bed, Bath & Beyond
A look at the stocks making headlines on Monday
Credit Suisse (CS)
Shares in Credit Suisse were up nearly 3% on Monday morning after it reported its latest earnings.
The Swiss bank said in its final set of financial results that it had suffered a CHF 67bn ($75bn, £60.5bn) drop in customer deposits and CHF 61bn in net asset outflows in the first quarter of 2023.
Assets in its wealth management division also fell from CHF 707bn in Q1 2022 to CHF 502.5bn in the same period this year.
Victoria Scholar, head of investment at Interactive Investor, said: “Turmoil in the banking sector that ultimately led to a rescue deal for the Swiss lender from UBS has prompted a major exodus from clients amid the lender’s uncertain outlook.
“However, Credit Suisse had already been struggling for a long time in the build up to the arranged marriage.”
Read more: FTSE and European stocks lower as Credit Suisse says £55bn left bank before rescue
In the fourth quarter the bank reported a CHF 7.3bn loss in 2022, the worst since the global financial crisis. Moreover, liquidity concerns prompted significant outflows around October last year.
“The newly merged entity when it joins forces is reportedly looking at significant job cuts of potentially as much as 20%-30% of Credit Suisse’s workforce, according to Tages-Anzeiger newspaper,” Scholar added.
“UBS’ reappointed CEO Sergio Ermotti who will be steering the acquisition said there would be ‘change and hard decisions’ ahead. Focus now shifts to earnings from UBS on Tuesday with comments on Credit Suisse likely to take centre stage.”
First Republic (FRC)
Shares in First Republic will also be closely watched as the US bank reveals its latest financial results later on Monday.
Following the failure of the Silicon Valley Bank (SVB) in March, First Republic faced similar investor concerns over the sustainability of uninsured deposits and unrealised losses in its securities portfolios.
The Federal Reserve Bank and JPMorgan Chase & Co (JPM) stepped in to help, providing additional liquidity.
As a result of the turmoil, the company’s first-quarter revenues and earnings are likely to have declined year-over-year.
Coca-Cola (KO)
Coca-Cola released its first-quarter earnings and posted solid results for 2023 on Monday.
It topped estimates on resilient demand for its sodas and multiple price increases to combat higher commodity and shipping costs.
Average selling prices increased 11%, while global unit case volumes rose 3%.
Read more: Is gold losing its mojo as the US dollar strengthens?
Coca-Cola also said its revenue rose 4.3% to $10.96bn. It beat estimates of $10.80bn, according to Refinitiv data.
Adjusted earnings came in at 68 cents per share, compared with estimates of 64 cents. The company also maintained its annual forecasts.
Over the last four weeks, Coca-Cola stock has gained 6.66%, and over the last 12 months its price has fallen by 1.84%.
“Looking ahead, we forecast Coca-Cola to be priced at 62.05 by the end of this quarter and at 56.42 in one year, according to Trading Economics global macro models projections and analysts expectations,” Trading Economics said.
Glencore (GLEN.L)
FTSE 100 (^FTSE) miner Glencore was among the companies at the bottom of the basket with its stock down 1.18% at 485.13p.
The commodity trading and mining company is currently pursuing a takeover bid for Canada’s Teck Resources (TECK-B.TO). However, Teck is looking to pursue its plan to to segment its steelmaking coal business through a key shareholder vote taking place on 26 April.
Glencore has said it will improve its offer in order to complete the acquisition but it wants Teck’s shareholders to first reject the plan to separate its business.
“We affirm Glencore’s proposal will stand and remain valid if Teck delays its shareholders’ meeting or Teck shareholders vote down the Proposed Teck Separation on 26 April 2023. Glencore is willing to make an offer directly to Teck shareholders if the Proposed Teck Separation does not proceed and Glencore believes that this is required where there continues to be no engagement from the Teck Board,” a company statement said.
Bed, Bath & Beyond (BBBY)
Retailer Bed, Bath & Beyond filed for bankruptcy protection following years of bad sales and losses.
The company, based in New Jersey in the US, said it had voluntarily made the filing “to implement an orderly wind down of its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of its assets.”
However, the company said its 360 Bed Bath & Beyond and 120 Buy Buy Baby shops and websites will remain open and continue serving customers as it begins its efforts to close its retail locations.
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The group also said in a statement that it will uphold its commitments to customers, employees, and partners, including continued payment of employee wages and benefits.
Sue Gove, president and chief executive of Bed Bath & Beyond Inc. said: "Millions of customers have trusted us through the most important milestones in their lives — from going to college to getting married, settling into a new home to having a baby.
“We deeply appreciate our associates, customers, partners, and the communities we serve, and we remain steadfastly determined to serve them throughout this process. We will continue working diligently to maximise value for the benefit of all stakeholders."
Watch: Coca-Cola stock rises on Q1 earnings beat, reiterates full-year forecast
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