US stocks rose on Monday as Wall Street digested JPMorgan Chase’s acquisition of regional lender First Republic Bank.
The S&P 500 (^GSPC) is up 0.22%, while the Dow Jones Industrial Average (^DJI) is up 0.13% as of 2:15 pm ET. The tech-heavy Nasdaq Composite (^IXIC) gained 0.13%.
Regulators seized First Republic (FRC) early Monday, selling most of the bank’s operations to JPMorgan in the biggest banking meltdown since the 2008 financial crisis. Jamie Dimon, CEO of JPMorgan Chase, said the First Republic seizure marked a phase of Panic in the banking system ended.
“That part of the crisis is over,” he told analysts on a conference call Monday.
A number of banks including JPMorgan and PNC made offers to the Federal Deposit Insurance Corporation on Sunday to acquire the embattled bank.
JPMorgan Chase & Co. (JPM) shares rose over 2% during Monday’s session.
Interest rates will also be in the spotlight this week as the May 2nd meeting of the Federal Reserve Policymaking Committee begins. Markets put the probability of a quarter-point hike Monday morning at 86%.
In addition, economic data released on Monday showed that US factory activity contracted in April for the sixth straight month as businesses continued to slow amid weak demand. The Institute for Supply Management’s index of factory activity rose to 47.1 from 46.3, beating economists’ estimate of 46.8 for the month. A reading below 50 indicates US production is shrinking. Jobless claims are on deck this week and the big headline at the end of the week will be the April jobs report. All economic data is expected to lead to another volatile week for Treasury yields.
Indeed, the yield on the 10-year note rose to 3.55%, while the yield on the interest-sensitive 2-year note rose to 4.12% as renewed strength swept the Treasury market on Monday, following factory data and as several companies faced debt sales the Fed’s interest rate decision. On the commodities front, Gold (GC=F) falls back below $2,000, reversing gains from earlier in the session.
The story goes on
By now, most of the big tech earnings have come in, and Wall Street is watching closely how much the industry has boosted the market this year. The question is whether the rally will continue. Apple’s earnings results are next on deck for Thursday.
Results from AMD (AMD), Starbucks (SBUX), Ford (F), Pfizer (PFE) and Uber (UBER) will also highlight the calendar.
On single stock movement, NVIDIA Corporation (NVDA) shares gained 4% after reports from chipmaker Arm Ltd. of Softbank Group Corp. had applied to the regulatory authorities for an IPO. NVIDIA has scrapped plans to acquire Arm in 2022 amid regulatory opposition.
Coinbase Global, Inc. (COIN) shares fell more than 5% after analysts at Needham cut their price target to $70 per share from $73.
SoFi Technologies, Inc. (SOFI) shares fell more than 10% on Monday after the financial services company beat earnings expectations for its quarter while showing continued momentum in personal lending.
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Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
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