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First Citizens to buy SVB assets; shares jump
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Bank indexes higher
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Indexes: Dow up 0.9%, S&P 500 up 0.5, Nasdaq down 0.1%
(Updates to late afternoon trading, adds NEW YORK dateline)
By Caroline Valetkevitch
NEW YORK, March 27 (Reuters) - The Dow and S&P 500 were
higher in afternoon trading Monday as a deal for Silicon Valley
Bank's assets helped investor confidence in banks, while the
Nasdaq edged lower.
The S&P 500 banks index was up 2.8%, while the KBW
regional banking index was up 1.1%.
Shares of JPMorgan Chase & Co were up 2.9%, helping
to support the S&P 500 along with Bank of America , which
was up 4.4%.
Shares of First Citizens BancShares Inc were up
more than 50% Monday after it said it would acquire the deposits
and loans of Silicon Valley Bank, which failed earlier this
month in the largest bank collapse since the 2008 financial
crisis.
Also, shares of First Republic Bank were up about
11% after Bloomberg reported U.S. authorities were considering
more support for banks, which could give the struggling First
Republic more time to shore up its balance sheet.
Tech-related growth shares were lower, weighing on the
Nasdaq.
Growth stocks have "had a very strong quarter growth stocks,
so there may be some profit-taking as we head into the end of
the quarter," said Tim Ghriskey, senior portfolio strategist at
Ingalls & Snyder in New York.
The Dow Jones Industrial Average rose 288.66 points,
or 0.9%, to 32,526.19, the S&P 500 gained 21.21 points,
or 0.53%, to 3,992.2 and the Nasdaq Composite dropped
11.95 points, or 0.1%, to 11,812.01.
Shares of Apple were down 0.9%. The S&P 500
technology index is up about 16% for the quarter so
far.
Crypto shares were also down after the Commodity Futures
Trading Commission said crypto exchange Binance and its CEO and
founder Changpeng Zhao have been sued by the CFTC for operating
an "illegal" exchange and a "sham" compliance program.
Among other gainers, Walt Disney shares were up 1.5%
after the company began 7,000 in layoffs announced earlier this
year.
Advancing issues outnumbered declining ones on the NYSE by a
3.33-to-1 ratio; on Nasdaq, a 1.61-to-1 ratio favored advancers.
The S&P 500 posted 6 new 52-week highs and no new lows; the
Nasdaq Composite recorded 43 new highs and 110 new lows.
(Reporting by Caroline Valetkevitch in New York and additional
reporting by Amruta Khandekar and Ankika Biswas; Editing by
Chizu Nomiyama)
