Stock futures rose Monday after U.S. authorities stepped in and said depositors of now-defunct Silicon Valley Bank would be made whole as would depositors of Signature Bank, which also was closed.
These stocks were poised to make moves Monday:
$First Republic Bank(FRC-N)$ (FRC) was falling 64% in premarket trading. The bank said Sunday it “further enhanced and diversified its financial position” through additional liquidity from JPMorgan Chase(JPM) and the Federal Reserve.
Shares of First Republic sank as much as 50% on Friday following the collapse of Silicon Valley Bank. The bank doesn’t cater to the venture capital industry as much as Silicon Valley Bank did, but investors have worried about its concentrated, well-heeled, deposit base that might look to move their savings into higher-yielding products, thereby eroding a low-cost source of funding for the bank.
American depositary receipts of HSBC fell 0.2% in premarket trading after the biggest bank in Europe agreed to buy the U.K. unit of Silicon Valley Bank in a deal brokered by the British government and the Bank of England.
Roku (ROKU) was down 0.4% while Etsy (ETSY) gained 2.2% after the U.S. said depositors at Silicon Valley Bank would have access to all their funds on Monday. Both companies had deposits at Silicon Valley Bank. Roku had warned in a securities filing Friday that it was uncertain how much of its cash on deposit at Silicon Valley Bank would be recoverable.
Provention Bio(PRVB) was soaring 262.5% to $24.29 after the U.S.-based biopharmaceutical company focused on autoimmune diseases agreed to be acquired by France’s Sanofi(SNY) for $25 a share, or about $2.9 billion.
Illumina(ILMN) gained 2.6% after the Journal reported that Carl Icahn was preparing a proxy fight at the biotechnology company. Icahn argues Illumina cost its shareholders roughly $50 billion by moving ahead with a risky acquisition of cancer-screening company Grail, the Journal noted.
Saudi Arabia’s Public Investment Fund is close to selecting Boeing(BA) as the initial aircraft supplier for a new national Saudi airline, The Wall Street Journal reported. Boeing rose 1.4% in premarket trading.