Troubled regional bank stocks are trading higher for a second consecutive day in pre-market trading, which is fueling additional retracement in Treasury yields from last week’s overbought conditions. The stock price of embattled PacWest is up another 40% more than an hour ahead of the open to $8.03/share after the stock traded as low as $2.48/share last Thursday. The bank announced it was cutting its quarterly dividend to one cent to accelerate a plan to build capital. On the data front, the Fed will release an updated Senior Loan Officer Opinion Survey this afternoon. The survey was conducted in April to cover the first quarter’s activity. The April CPI report will be released on Wednesday and is expected to show modest deceleration in core inflation. Several Fed leaders will also be speaking this week, beginning with Neel Kashkari (Minn. Fed) later this afternoon.
Jason Haley
Chief Investment Officer
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