ZION - Dow S&P Waver After First Republic Sale
The Dow Jones Industrial Average climbed Monday as investors bet the government seizure of First Republic over the weekend and subsequent sale to JPMorgan Chase had sufficiently contained the regional banking crisis that has worried markets since March.
The blue-chip index hiked 50.92 points to pause for lunch at 34,149.08.
The S&P 500 increased 4.68 points to 4,174.16.
The NASDAQ Composite fell 17.31 points to 12,209.28.
The Dow is up more than 7% since hitting a closing low for that month, and the S&P 500 has climbed 8%. The NASDAQ is up 9%.
The major averages have rebounded sharply from the late-March lows reached amid the banking crisis. The Dow is up more than 7% since hitting a closing low for that month, and the S&P 500 has climbed 8%. The Nasdaq Composite is up 9%.
JPMorgan Chase shares rose 2.6% after it came on top as the winner of a weekend auction for First Republic. The big bank has acquired all of troubled lender First Republic's deposits and a “substantial majority of assets.” This deal means that JPMorgan Chase, already one of the biggest U.S. banks, will become even larger.
JPMorgan Chase CEO Jamie Dimon said that the deal resolves much of the fallout in the banking sector that has started since the sudden collapse of Silicon Valley Bank in March.
Zions Bancorp shares declined 3.1%. Meanwhile, Western Alliance and PacWest shares tumbled 1.1% and 9.3%, respectively.
First Republic reported last week that deposits tumbled more than 40% in the first quarter, triggering further declines in the already struggling stock. Shares have cratered 97% since the start of the year. The stock is halted for trading as of Monday.
Investors are looking to several big-name companies releasing their earnings this week. Tech giant Apple and other headliners Qualcomm and AMD are scheduled to announce their quarterly results.
Prices for the 10-year Treasury gained ground, lowering yields to 3.55% from Friday's 3.43%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.36 to $75.42 U.S. a barrel.
Gold prices dipped $7.30 to $1,991.80 U.S. an ounce.