Wall Street opened this Monday on mixed ground and the Dow Jones Industrials, its main indicator, rose 0.18%, after the US authorities intervened and they sold the First Republic bank (-43.30%) to the banking giant JPMorgan Chase (3.71%).
Fifteen minutes after the start of operations on the New York Stock Exchange, the Dow Jones rose to 34,160 units and the selective S&P 500 added 0.09% to 4,173 points.
For its part, the composite index of the Nasdaq market, in which the main technology companies are listed, lost 0.08% to 12,216 integers.
Now investors are weighing the consequences of the acquisition of the failed First Republic bank.
JPMorgan said it will take over First Republic’s $92 billion in deposits and has also bought most of the bank’s assets, including about $173 billion in loans and $30 billion in securities.
First Republic’s 84 branches will reopen as part of JPMorgan today Monday during normal business hours, and customers will have full access to their deposits, the Federal Deposit Insurance Corporation (FDIC) said.
First Republic reported last week that deposits fell more than 40% in the first quarter, sending shares down further. Since the start of the year, shares have plunged 97%.
Wall Street closed a month and a week of gains on Friday.
April was a month marked by business results and this week it is the turn of Pfizer, Starbucks and CVS, among others, to publish their latest quarterly results.
The sectors with the highest gains at today’s opening were industrial and raw materials, with a rise of 0.73% and 0.54%, respectively. While the greatest losses were for non-essential goods and energy, which fell by 0.37% and 0.24%, respectively.
Among the 30 Dow Jones stocks, the companies with the biggest losses were Home Depot (-0.98%) and Intel (-0.77%). While the highest gains were for JPMorgan and Caterpillar (1.35%).
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