United Airlines, First Republic, Charles Schwab

United Airlines (UAE)

United Airlines stock fell more than 7% after the company said it expects to see a quarterly loss as a result of its labor contract. United now sees a first-quarter loss of 60 cents to $1 per share. stock. Analysts had expected a profit of 69 cents.

The company said it sees “new seasonal demand patterns, with lower demand months like January and February 2023 growing less than higher demand months.” United now expects that the total revenue per available seat miles for the first quarter of 2023 will increase between 22% to 23% compared to the first quarter of 2022, which is below the original guidance of approx. 25%.

Airline stocks have outperformed this year as consumers choose to spend their money on travel rather than buying goods or discretionary items. United Airlines stock is up about 30% year-to-date.

This photograph taken on March 8, 2023 shows a United airlines Airbus A319-132 aircraft parked at the gate at George Bush International Airport (IAH) in Houston, Texas. (Photo by Daniel SLIM / AFP) (Photo by DANIEL SLIM / AFP via Getty Images)

First Republic Bank (FRC)

Shares of First Republic Bank rose 5% in after-hours trading after a brutal day for the San Francisco-based bank. First Republic’s stock closed 62% lower on Monday despite measures by US regulators to bolster confidence in the regional banking system following the collapse of Silicon Valley Bank.

Analysts at Raymond James, Compass Point and Wolfe Research all downgraded First Republic. However, JPMorgan reiterated its overweight rating on the stock, saying this was a buying opportunity for investors.

The entire regional banking sector was under pressure on Monday.

“Here it is just a matter of fear. It’s a classic run on the bank issue,” Marc Cooper, CEO of Solomon Partners told Yahoo Finance Live. Cooper confirmed that he has funds in First Republic and will keep them there.

“In general, what we’ve learned from the past is that they don’t end quickly. These tough times don’t end quickly,” Cooper said.

Charles Schwab (BLACK)

Charles Schwab’s stock rose more than 1% in after-hours after a heavy sell-off on Monday. The stock fell 11% to close at $51.91, despite assurances from the finance company that it has plenty of funds. Shares fell as much as 23% during the trading session – the biggest one-day drop.

On Monday, Citi analysts defended the stock and upgraded their rating to Buy from Neutral, noting a “compelling” entry point.

“We see near-term headwinds from revenue/earnings from rising financing costs and continued customer sorting of cash, but we believe these are reflected in the current share price,” analysts Chris Allen and Alessandro Balbo wrote.

Ines is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre

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