Risk trades are doing better today with the euro and pound rebounding from yesterday's beatings. Treasury yields have also ticked higher.
Helping sentiment is a 14% pre-market rally in shares of PacWest Bancorp, which reported that deposits were in-line with estimates late yesterday. That's a big contrast with the brutal bleed at First Republic, where shares are down another 15% premarket to $7.10, after falling as low as $5.55.
JPMorgan's equity desk writes that the PacWest results, "seemingly gives more evidence that FRC is idiosyncratic."
They also note results from Visa showing a 10% increase in transactions y/y in real terms, a sign that the consumer "remains in good shape."
So the question for today will be whether the market can separate First Republic from other regional banks or whether it will continue to be an anchor. But first, US durable goods orders are due at the bottom of the hour along with advance goods trade balance numbers and wholesale inventories.
Later, US energy inventories are out but a tight API report so far hasn't helped crude. For more, see the economic calendar.
S&P 500 futures are up 5 points.
