Wall Street Today | Fed Says US Banks Tightened Credit Further in Wake of Failures

The Federal Reserve said that banks reported tighter standards and continued weak demand for loans in the second quarter, extending a trend that began before recent stresses in the banking sector emerged.

The proportion of US banks tightening terms on commercial and industrial loans for medium and large businesses rose to 50.8%, up from 46% in the first quarter, according to a Fed survey of lending officers released Monday.

Stock traders refrained from making big bets in the final day of July as concern about an overheated market resurfaced amid a rally that drove the S&P 500 to its longest streak of monthly gains since August 2021.

The US Treasury is set this week to begin a ramp-up in issuance of longer-dated securities that’s likely to stretch into next year, forced by a rapidly deteriorating budget deficit and soaring interest rates.

For the first time since early 2021, the Treasury will boost its so-called quarterly refunding of longer-term Treasuries, to $102 billion from $96 billion, the consensus among dealers suggests. While down from the record levels hit during the Covid-19 crisis, that’s well above pre-pandemic levels.

Oil posted its largest monthly increase in more than a year on signs that the market is tightening, with analysts estimating that crude demand is running at a record clip just as OPEC+ cuts back production.

A reduction of supply from OPEC+ heavyweights Saudi Arabia and Russia has improved the outlook for crude. Speculators have been ramping up bullish bets on US crude futures, as well as on key refined products that have also seen their prices surge in recent weeks.

At least one of the factories that the Taiwanese company plans to construct in the southern Karnataka state will produce Apple parts, including for iPhones, people familiar with the matter said. A formal announcement is expected as early as this week, the people said, declining to be named as the matter is not public.

In a note on Sunday, Colantuoni lowered his rating on the online auto retailer’s stock to Underperform, the equivalent of Sell, after keeping it at Hold since May of last year. He cut his price target to $30 from $55 earlier.

Despite the downgrade, Weiss lifted his target price on Salesforce stock to $278 form $251, reflecting focus on 2025 results rather than 2024, and incorporating higher estimates from recent product price increases.

The company, which expects adjusted revenue of $1.03 billion to $1.09 billion for the second half, now guides for net revenue of $1.97 billion to $2.03 billion for 2023, up from its prior guidance of $1.96 billion to $2.02 billion.