Closing Stock Market SummaryThe new week got started on a mixed note after the weekend went by without additional worrisome news from the banking sector. Instead, sentiment around the bank industry shifted today after investors learned that First Citizens Bancshares (FCNCA 895.61, +313.06, +53.7%) will acquire $72 bln of Silicon Valley Bank's assets at a discount of $16.50 bln.
Market participants were also reacting to a Bloomberg report indicating that U.S. authorities are considering expanding an emergency lending facility for banks in ways that would give First Republic Bank (FRC 13.82, +1.46, +11.8%) more time to shore up its balance sheet.
Recently embattled regional bank stocks like Western Alliance (WAL 34.05, +1.00, +3.0%) and PacWest Bancorp (PACW 9.88, +0.33, +3.5%) closed with decent gains, albeit off their highs for the day. The SPDR S&P Bank ETF (KBE) was up 2.2% and the SPDR S&P Regional Bank ETF (KRE) closed with a 0.9% gain.
Despite relative strength from the banking sector, the S&P 500 and Dow Jones Industrial Average closed with only slim gains while the Nasdaq was pinned in negative territory at the close. The main indices were feeling the weight of lagging mega cap stocks, which helped drive a 0.7% loss in the Vanguard Mega Cap Growth ETF (MGK) versus a 0.7% gain in the Invesco S&P 500 Equal Weight ETF (RSP).
Most of the S&P 500 sectors closed with a gain led by energy (+2.1%), which was boosted by rising oil prices. WTI crude oil futures rose 5.5% to $73.05/bbl.
The financial sector (+1.4%) was another top performer along with industrials (+0.8%) and materials (+0.7%). On the flip side, the heavily weighted communication services (-1.1%) and information technology (-0.9%) sectors were the worst performers along with real estate (-0.4%).
Notably, small and mid cap stocks outperformed their larger peers today. The Russell 2000 rose 1.1% and the S&P Mid Cap 400 was up 0.9% at the close.
Treasuries settled the session with losses across the curve. This followed today's $42 bln 2-yr note auction, which met weak demand. The 2-yr note yield rose 23 basis points to 3.79% and the 10-yr note yield rose 15 basis points to 3.53%. The U.S. Dollar Index fell 0.2% to 102.88.
- Nasdaq Composite: +12.4% YTD
- S&P 500: +3.6% YTD
- S&P Midcap 400: -0.2% YTD
- Russell 2000: -0.4% YTD
- Dow Jones Industrial Average: -2.2% YTD
Looking ahead to Tuesday, market participants will receive the following economic data:
- 8:30 ET: February advance goods trade deficit (prior -$91.50 bln), advance Retail Inventories (prior 0.3%), and advance Wholesale Inventories (prior -0.4%)
- 9:00 ET: January FHFA Housing Price Index (prior -0.1%) and January S&P Case-Shiller Home Price Index (Briefing.com consensus 2.5%; prior 4.6%)
- 10:00 ET: March Consumer Confidence (Briefing.com consensus 101.5; prior 102.9)
There was no U.S. economic data of note today.