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MarketBitesđź’¸: Dow Jones Builds on Last Week's Gains

 

 

Welcome to MarketBites! Here's all you need to know about yesterday's market news.

 

“If you want to change the world, start off by making your bed."

-William H. McRaven

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PORTFOLIO MANAGER COMMENTARY

The Dow rose Monday, building on last week’s gains, as investors attempted to move on from the crisis that broke out in the regional bank sector earlier this month following the collapse of Silicon Valley Bank. Regional banks rose broadly. The SPDR S&P Regional Banking ETF (KRE) rose about 0.9%, after climbing more than 3% earlier in the day. First Republic surged 11.8%. PacWest also gained 3.4%.

 

“Market sentiment is improving as policymakers take steps to alleviate the recent challenges,” said Brian Levitt, global market strategist at Invesco. “An extension of the liquidity facility that had been set up by the Federal Reserve meaningfully eases prior concerns that a series of bank runs could be in the offing.”

 

Also, Bloomberg News reported that U.S. authorities were considering expanding an emergency lending program for banks, which could give First Republic more time to shore up its liquidity. First Republic ended last week down 46.3% as investors contemplated whether the plan from a group of banks to deposit $30 billion would be enough to bolster its balance sheet. Also, First Citizens BancShares agreed to buy large parts of Silicon Valley Bank, the U.S. Federal Deposit Insurance Corporation said overnight. 

 

CHART OF THE DAY

Working remotely is becoming increasingly rare a few years after the pandemic caused millions of Americans to decamp from worksites to their basements and bedrooms. About 72.5% of businesses said their employees teleworked rarely or not at all last year, according to a Labor Department report. That figure is up from the 60.1% reported in 2021. The survey also showed that about 21 million more workers were fully on-site in 2022 compared to the prior year. Moving forward, remote work is not likely to fully disappear. Around 13% of current job postings are for remote positions. That is down from 17% in March, but well above the pre-pandemic level of 4%.

 

First Citizens

 

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