Stocks ended mixed on Monday as bank stocks rose higher as market participants were encouraged by First Citizens' purchase of a large part of Silicon Valley Bank. The Dow Jones Industrial Average climbed nearly 200 points, while the S&P 500 Index added 0.16% and the Nasdaq Composite lost about 0.5%.
Here's how the market settled on Monday:
S&P 500 Index (NYSE: SPY): +0.16% or +6.54 points to 3,977.53
Dow Jones Industrial Average (NYSE: DIA): +0.60% or +194.55 points to 32,432.08
Nasdaq Composite Index (NASDAQ: QQQ): -0.47% or -55.12 points to 11,768.84
Sentiment towards the banking industry improved on Monday, with the SPDR S&P Regional Banking ETF (NYSE: KRE) climbing as much as 3% during the session. The increased optimism towards the battered sector comes as First Citizens BancShares (NASDAQ: FCNCA) agreed to buy large parts of Silicon Valley Bank.
The deal includes the purchase of about $72 billion of SVB assets at a discount of $16.5 billion, the Federal Deposit Insurance Corporation (FDIC) announced. The FDIC said about $90 billion of SVB securities and other assets will remain "in receivership for dispositions by the FDIC."
Other positive news included a Bloomberg News report that U.S. authorities were considering expanding an emergency lending program for banks. That measure could give First Republic (NYSE: FRC) more time to boost its liquidity.
Bank names that gained on Monday included other regional banks like PacWest Bancorp (NASDAQ: PACW), Western Alliance Bancorporation (NYSE: WAL), Zions Bancorporation (NASDAQ: ZION), and Regions Financial (NYSE: RF). Big bank stocks also rose higher, including Bank of America (NYSE: BAC), JPMorgan Chase (NYSE: JPM), Wells Fargo (NASDAQ: WFC), and Citigroup (NYSE: C).
In single stock moves, Disney (NYSE: DIS) will begin the first of three rounds of layoffs this week, according to a memo from CEO Bob Iger, CNBC reports. All three rounds will take place before the start of the summer and will affect about 7,000 positions, Iger said. The previously announced job cuts are apart of Disney's broader cost-cutting efforts.
Wall Street is coming off of a winning week last week despite ongoing pressures on the global banking system. The Dow gained 1.2% for the week, while the S&P 500 rose 1.4% and the Nasdaq added 1.7%.
Looking ahead, the banking sector will continue to dominate market moves this week, starting with the Senate Banking Committee holding a hearing on bank failures on Tuesday. Witnesses include FDIC Chair Martin Gruenberg, Federal Reserve Vice Chair Michael Barr, and Treasury Undersecretary Nellie Liang.
Traders are in-store for more economic data this week as well, with readings on consumer confidence and inflation slated for release throughout the week.