New York Community Bank (NYCB) is the trade of the year that started yesterday and continues this morning. After shares fell by as much as 45% on Wednesday, a $1 billion infusion reversed the decline.
NYCB stock gained 7.45% while its preferred shares returned 14.2%. A group of investors, which includes former Treasury Secretary Steven Mnuchin, would invest in the regional bank. The deal will close on March 11 and will still require regulatory approvals.
The Fed benefits from private investments preventing NYCB from failing. Last year, the firm bailed out Signature Bank. The central bank would not want to save Signature Bank a second time.
The bear market for media stocks may show signs of ending. Paramount (PARA) shares touched a 52-week low of $10.16 this week. By comparison, Comcast (CMCSA) is range-bound while Sony (SONY) dipped from Jan. 2024 highs. Paramount CFO Naveen Chopra said that its subscribers should brace for more price hikes on the Paramount+ service. The firm is under shareholder pressure to turn the streaming service into a profitable business.
In the tech sector, Palantir (PLTR) will need to follow through from yesterday’s rally. The firm won a fresh $178 million U.S. Army contract. It will supply a battlefield system that uses artificial intelligence.
