Bank Stocks Lift Dow, S&P 500

Markets Closed 3/27/23

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Key Takeaways

  • U.S. equities finished mixed, with bank stocks jumping after First Citizens BancShares (FCNCA) bought a large portion of the assets and deposits of collapsed Silicon Valley Bank (SVB), and on signs the turmoil in the sector is easing.
  • The bank headlines and a cut in supplies coming from the Kurdistan region of Iraq sent oil futures soaring, boosting shares of fossil fuel-related companies.
  • Carnival Corporation (CCL) shares sank on the cruise operator’s lower-than-expected guidance.

U.S. equities finished mixed, with bank stocks jumping after First Citizens BancShares (FCNCA) bought a large portion of the assets and deposits of collapsed Silicon Valley Bank (SVB), and on signs the turmoil in the sector caused by the failure of SVB and Signature Bank is easing. Bond yields took off as the banking news led investors to take money out of Treasurys and put it into stocks. 

The move by First Citizens sent its shares skyrocketing 53%. Shares of other regional banks, including First Republic Bank (FRC), Comerica (CMA), and KeyCorp (KEY), advanced. Large banks’ shares gained as well. Bank of America (BAC) shares climbed 5%, and Citigroup (C) shares picked up 4%. Shares of Goldman Sachs (GS), JPMorgan Chase (JPM), and Wells Fargo (WFC) were also higher. 

The bank headlines and a cut in supplies coming from the Kurdistan region of Iraq sent oil futures soaring, boosting shares of fossil fuel-related companies. Analyst upgrades lifted shares of Corning (GLW) and Pinterest (PINS). 

Cruise Line Shares Decline

Carnival Corporation (CCL) shares sank on the cruise operator’s lower-than-expected guidance. Shares of rivals Norwegian Cruise Line Holdings (NCLH) and Royal Caribbean Cruises (RCL) fell as well. Nike (NKE) was the worst-performing stock in the Dow on a report the athletic apparel giant is taking on Formula 1 star Max Verstappen's planned Max 1 clothing line over a trademark issue. Shares of Apple (AAPL), Alphabet (GOOGL), Meta Platforms (META), and Microsoft (MSFT) lost ground on concerns about higher interest rates, which make tech stocks less attractive.

Gold prices dropped. The U.S. dollar declined against the euro and pound, but gained versus the yen. Major cryptocurrencies traded lower as U.S. regulators filed charges against the Binance exchange. 

S&P 500 Biggest Gains and Losses 3/27/23

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