PacWest's stock finds its footing, rising in the absence of negative updates on banks

By Steve Gelsi

Banks overall end mixed

PacWest Bancorp regained its footing and ended higher for its second straight day of gains, with no major announcements from the sector on Tuesday.

PacWest (PACW) was up 2.4% at the closing bell, as the broad market equities moved down.

Earlier, PacWest was the most heavily traded stock in premarket action, with double-digit-percentage losses.

Meanwhile, Western Alliance Bancorp. (WAL) retreated by 1.4%, East West Bancorp Inc. (EWBC) dipped by 0.1% and Comerica Inc. (CMA) rose by 0.4%.

The KBW Nasdaq Bank Index rose less than 0.1%, while the Financial Select Sector SPDR exchange-traded fund (XLF) and the SPDR S&P Regional-Banking ETF (KRE) both moved lower by 0.4%.

On Monday, PacWest's stock rose as the bank said its business remains in healthy shape and cut its dividend to a penny a share from 25 cents a share to build up its capital reserves.

PacWest shares are now down 73.4% in 2023, following the failures of Silicon Valley Bank, First Republic Bank and Signature Bank since early March.

-Steve Gelsi

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05-09-23 1651ET

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