Regional Banks’ Credit Concerns Drag Dow Futures: NVO, WAL, ZION, IBKR Among Stocks To Watch

U.S. stocks appear set for a negative opening on Friday as fears about the exposure of regional banks to bad loans soured investor sentiment.

On Thursday, Western Alliance Bancorp (WAL) stated in a filing with the U.S. Securities and Exchange Commission (SEC) that one of its borrowers failed “to provide collateral loans in first position,” raising fraud allegations and further unsettling markets. This was after Zions Bancorp NA (ZION) reported on Wednesday that it would take a $50 million charge-off tied to commercial and industrial loans.

While Dow Jones futures were down by 0.13% at the time of writing, the S&P 500 futures declined 0.41%, while the tech-heavy Nasdaq 100’s futures fell 0.59%. Futures of the Russell 2000 index were down by 0.87%.

Meanwhile, the SPDR S&P 500 ETF (SPY) was down by 0.34% at the time of writing, Invesco QQQ Trust (QQQ) fell 0.54% on Friday morning, and SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.18%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.

Asian markets ended Friday’s trading session on a largely negative note, with the Hang Seng index declining the most at 2.6%, followed by the Shanghai Composite at 1.99%, the Nikkei 225 at 1.52%, and the TWSE Capitalization Weighted Stock at 1.27%.

The KOSPI edged up by 0.01%.

Stocks To Watch

• Novo Nordisk AS (NVO): Novo Nordisk shares were down more than 4% in Friday’s pre-market trade after President Donald Trump said that the prices of its diabetes drug Ozempic would be reduced to $150 a month, while its current list price is around $1,000.
• Zions Bancorp NA (ZION), Western Alliance Bancorp (WAL): Zions and Western Alliance will be among the stocks to watch on Friday following their credit risk disclosures. While Zions' stock fell over 13% on Thursday, Western Alliance shares declined nearly 11%. Both stocks were marginally up in Friday’s pre-market session.
• Interactive Brokers Group Inc. (IBKR): Interactive Brokers’ third-quarter (Q3) results beat Wall Street expectations. The firm reported earnings per share (EPS) of $0.57 on revenue of $1.66 billion, compared to analyst estimates of an EPS of $0.54 on revenue of $1.53 billion, according to Stocktwits data. Despite the earnings beat, the company’s shares were down nearly 3% pre-market.
• American Express Co. (AXP), Fifth Third Bancorp (FITB), and Comerica Inc. (CMA) are among the companies scheduled to report their latest quarterly earnings on Friday.

Also See: Gold Price Sees Relentless Rally To Fresh Record Highs On Safe Haven Demand

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