Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action news and analysis.

Good afternoon. Today is Tuesday, Augustth and I'm your host Kim Khan.

Our top story in today's session.

Another rating agency is getting attention after the Fitch Cut of US debt.

This time it's Moody's, which cut credit ratings on multiple small and

min-sized banks and place six larger lenders on review for downgrade.

The move reflects U.S. banking stresses, including funding pressures, regulatory capital weakness, and commercial real estate exposure.

Analysts say banks' Q2 results showed growing profitability pressures that will reduce their ability to generate internal capital,

while also pointing to a mild recession on the horizon.

Banks will benefit from the Fed's liquidity backstops and the Federal Home Loan Bank System funding,

but these sources require collateral and come at greater

costs than deposits. Moody says small and in-sized banks with greater exposure to commercial

real estate, especially in construction and office lending face more risks.

They downgraded M&T Bank, Pinnacle Financial, and Old National.

The lenders on review for downgrade are Bank of New York Mellon, U.S. Bankort, State Street, Truist Financial,

Cullen Frost, and Northern Trust.

Moody's also revised its outlook to negative for some banks, including Capital One, PNC, and Fifth Third.

Now look at today's trading.

Stocks are giving back much of Monday's gains in morning trading,

as wheat guidance calls sharp sell-offs and some big names.

The S&P 500 is down about 1%, while the NASDAQ and Dow are down

more than 1%. Financials is the weakest sector following the Moody's move. Health

...