US stock futures rose ahead of Monday’s open, while bank stocks also rose after North Carolina-based First Citizens Bank (FCNCA) agreed to buy most of the Silicon Valley bank.
Futures related to the S&P 500 (^GSPC) and futures on the Dow Jones Industrial Average (^DJI) rose 0.6%. Contracts in the technology-heavy Nasdaq Composite (^IXIC) rose 0.3%.
Bond yields bounce. The yield on the 10-year US Treasury rose to 3.4% Monday morning. WTI is up near $70 a barrel.
Stocks ended a choppy week with gains on Friday, in a week that saw the Federal Reserve raise interest rates by 0.25%, while pressures in the US and European banking sectors remained in focus for investors. Shares of Deutsche Bank (DB) took a hit on Friday after insurance costs Bank against credit default It rose overnight. All of the major stock market indices finally posted a winning week, with the Dow Jones average up 1.2%, the S&P 500 up 1.4%, and the Nasdaq Composite closing up 1.7%.
Banks will dominate the headlines again this week with the earnings release and economic calendars. The Senate Banking Committee will hold a hearing on the bank failures on Tuesday, with the list of witnesses including FDIC Chairman Martin Gruenberg, Fed Vice Chairman Michael Barr and Undersecretary of the Treasury Nellie Liang.
Looking ahead, the banking sector will clearly set the scene this week as the end of the month approaches on Thursday. The data will be a bit secondary as it will be too early to judge any impact from the mini-crisis so far,” Jim Reid and colleagues at Deutsche Bank wrote in a note to clients.
Bank sentiment gained momentum Monday morning. Shares of regional banks were higher Monday morning, including First Republic Bank (FRC), PacWest Bancorp (PACW), Western Alliance Bancorporation (WAL), Zions Bancorporation (ZION), and Region Financial (RF).
The Wall Street heavyweights led by JPMorgan (JPM) have been trying for more than a week to raise capital for First Republic, which has included a $30 billion cash lifeline amid the failure of regional lenders Silicon Valley Bank and Signature Bank.
Meanwhile, First Citizens Bank entered into an agreement to purchase all of Silicon Valley Bank’s loans and deposits, According to the announcement of the Federal Deposit Insurance Corporation (FDIC). The North Carolina-based lender’s assets will double following the acquisition. The 17 branches of Silicon Valley Bank will now open as First Citizens Bank branches starting Monday. Shares of First Citizens Bank (FCNCA) rose more than 350% Monday morning.
Major bank stocks also rose, including Bank of America (BAC), JPMorgan Chase (JPM), Wells Fargo (WFC) and Citigroup (C).
On the economic front, a check of the US consumer’s pulse will come from the Conference Board’s gauge of consumer confidence released on Wednesday. Then, at the end of the week, the most important data point and the Fed’s favorite measure of inflation, PCE, is due to be released on Friday. Economists expect personal income in February to come in at 0.3%, slightly lower than January’s reading of 0.6%. Personal spending is expected to come in at 0.3%, down from the 1.8% reading in January.
On the earnings calendar, results from Micron Technology (MU), Lululemon (LULU), RH (RH), and Cal-Maine Foods (CALM) will be released this week.
–
Danny Romero, Yahoo Finance correspondent. Follow her on Twitter @tweet
Click here for the latest stock market news and in-depth analysis, including the events that move stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for apple or android
Follow Yahoo Finance on Twitter TwitterAnd FacebookAnd InstagramAnd FlipboardAnd linkedinAnd Youtube
Comments are closed.