Wall St edges lower as bleak earnings overshadow rise in regional banks
Wall Street’s main indexes were flat on Monday as bleak earnings from companies including Tyson Foods and Catalent clouded a rebound in regional lenders ahead of a key inflation reading this week.
Shares of Catalent Inc (CTLT.N) tumbled 26.0%, the biggest decliner on the benchmark S&P 500 (.SPX) index, as the contract drug manufacturer saw lower revenue and core profit in 2023.
Tyson Foods (TSN.N) dropped 12.3% on posting a surprise second-quarter loss and cutting its full-year revenue forecast, as prices for its beef and pork declined.
On the other end, regional banks’ shares stretched gains from a rebound on Friday, with PacWest Bancorp (PACW.O) jumping 19.9% after the lender sharply cut its quarterly dividend to boost capital.
Peers Western Alliance Bancorp (WAL.N) and Zions Bancorp (ZION.O) rose 3.9% and 3.2% respectively. Shares of such banks tumbled for much of last week on worries tied to the collapse of First Republic Bank.
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