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Stock market news today: Dow rises on bank stocks' strength while Nasdaq falls

Here's what's moving markets on Monday, March 27, 2023.

U.S. stocks were mixed on Monday, as bank stocks moved upward after North Carolina-based First Citizens (FCNCA) bank agreed to buy most of Silicon Valley Bank.

At the close, the S&P 500 (^GSPC) edged up 0.2% and the Dow Jones Industrial Average (^DJI) gained 0.6%. The Nasdaq Composite (^IXIC) was down by nearly 0.5%.

Bond yields got a bounce. The yield on the benchmark 10-year U.S. Treasury note rose to 3.5% Monday. WTI crude oil (CL=F) was up more than 5%, settling over $73 a barrel.

The moves Monday came after a volatile last week on Wall Street during which the Federal Reserve raised rates by 0.25% and pressures in the U.S. and European banking sectors remained in focus for investors. The major stock market indexes all tallied a winning week in the end, with the Dow Jones average gaining 1.2%, the S&P 500 rising 1.4%, and the Nasdaq Composite closing up 1.7%.

Banks will dominate the headlines again this week with the earnings and economic calendars in sight. The Senate Banking Committee will hold a hearing on bank failures on Tuesday, with the witness list including FDIC Chairman Martin Gruenberg, Federal Reserve Vice Chairman Michael Barr, and Treasury Undersecretary Nellie Liang.

Federal Reserve Vice Chair of Supervision Michael Barr wrote in a statement ahead of the hearing on Monday that the bank's failure reeked of "mismanagement."

"To begin, SVB's failure is a textbook case of mismanagement. The bank had a concentrated business model, serving the technology and venture capital sector," Barr's testimony reads.

Separately, FDIC Chairman Martin Gruenberg, said that "given the financial stability risks caused by the two failed banks, the methods for planning and carrying out a resolution of banks with assets of $100 billion or more also merit special attention, including consideration of a long-term debt requirement to facilitate orderly resolutions."

Bank sentiment gained momentum Monday morning. Regional bank stocks trading higher Monday included First Republic Bank (FRC), PacWest Bancorp (PACW), Western Alliance Bancorporation (WAL), Zions Bancorporation (ZION), and Regions Financial (RF).

Wall Street heavyweights led by JPMorgan (JPM) have been trying for more than a week to raise capital for First Republic, which included a $30 billion cash lifeline amid the failures of regional lenders Silicon Valley Bank and Signature Bank.

Meanwhile, First Citizens Bank entered into an agreement to buy all of Silicon Valley Bank’s loans and deposits, according to a Federal Deposit Insurance Corporation (FDIC) announcement. The North Carolina-based lender’s assets will nearly double following the acquisition. The 17 branches once belonging to Silicon Valley Bank will now open as First Citizens Bank branches beginning Monday. Shares of First Citizens Bank (FCNCA) rose more than 46% Monday morning.

An illustrative stock chart and First Citizens BancShares logo displayed on a phone screen are seen in this multiple exposure illustration photo taken in Krakow, Poland March 20, 2023. (Photo by Jakub Porzycki/NurPhoto via Getty Images)
An illustrative stock chart and First Citizens BancShares logo displayed on a phone screen are seen in this multiple exposure illustration photo taken in Krakow, Poland March 20, 2023. (Photo by Jakub Porzycki/NurPhoto via Getty Images) (NurPhoto via Getty Images)

Big bank stocks also gained, including Bank of America (BAC), JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C).

On the economic front, a pulse check on the U.S. consumer will come from the Conference Board's consumer confidence measure on Wednesday. Then, at the end of the week, the most important datapoint and the Fed's preferred inflation gauge, the PCE, is set for release Friday. Economists expect personal income in February to come in at 0.3%, slightly lower than January’s read of 0.6%. Personal spending its expected to reach 0.3%, lower than 1.8% January’s reading.

Here are the trending tickers on Yahoo Finance:

  • Disney (DIS): The company began laying off 7,000 workers on Monday as announced earlier this year , according to a memo sent by Chief Executive Bob Iger. The cuts come as Disney jumpstarts efforts to cut corporate spending and boost cash flow.

  • Carnival (CCL): The cruise operator reported a smaller-than-expected quarterly loss, while beating revenue forecasts, driven by strong travel demand.

  • Roku (ROKU): The media platform stock got an upgrade from neutral to positive from brokerage firm Susquehanna, which cited benefits to shift of linear budgets to the connected TV.

  • Coinbase (COIN): Crypto-related stocks were down after the Commodity Futures Trading Commission (CFTC) filed a complaint against Binance, alleging that the company "disregard applicable provisions of the Commodity Exchange Act (CEA) while engaging in a calculated strategy of regulatory arbitrage to their commercial benefit."

On the earnings calendar, results from Micron Technology (MU), Lululemon (LULU), RH (RH) and Cal-Maine Foods (CALM) are out this week.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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