Despite Friday's impressive rally, stocks were choppy to start the new week.
Regional bank stocks remained in focus following last week's massive selloff, while investors also looked ahead to this week's inflation data, which includes Wednesday's release of the April consumer price index.
Last week, the SPDR S&P Regional Banking ETF (KRE) plummeted 38% amid news that JPMorgan Chase (JPM, +0.2%) will buy First Republic after it was taken into receivership by the Federal Deposit Insurance Corp. (FDIC).
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
It looked as if regional banks were starting this week on firmer ground thanks to PacWest Bancorp's (PACW, +3.7%) late-Friday announcement that it is cutting its dividend as "a prudent step to build capital."
But after being up by nearly 3% at its session high, KRE ended Monday down 2.0%. The proximate cause for the selloff was the Federal Reserve's Senior Loan Officer Opinion Survey (SLOOS), which revealed that banks reported tighter lending standards the first quarter. This, according to the Fed, was due to a "more uncertain economic outlook, reduced tolerance for risk, deterioration in collateral values, and concerns about banks' funding costs and liquidity positions." What's more, banks said they expected to further restrict lending standards for the remainder of this year.
How did the stock market finish today
Seven of the 11 sectors finished lower, led by a 0.7% decline in real estate stocks. The communication services sector paced the four advancers with a 1.0% gain.
As for the major benchmarks, the Dow Jones Industrial Average slipped 0.2% to 33,618, while the S&P 500 (+0.05% to 4,138) and the Nasdaq Composite (0.2% to 12,256) eked out modest gains.
Buffett talks OXY at Berkshire Hathaway annual meeting
Berkshire Hathaway (BRK.B) held its annual meeting over the weekend, and the event sparked a number of notable headlines. For one, Berkshire Chairman and CEO Warren Buffett said the company is not going to take control of oil exploration and production company Occidental Petroleum (OXY). Buffett first added OXY to the Berkshire Hathaway equity portfolio in Q1 2022, and has been buying shares hand over fist – leading to rumors of a potential takeover. "There's speculation about us buying control, we're not going to buy control. … We wouldn't know what to do with it," Buffett said on Saturday.
While OXY fell, BRK.B gained ground, adding to its recent outperformance of the broader market. Longer term, Berkshire Hathaway has been one of the best 30 stocks of the past 30 years.
-
-
What’s in DeSantis’ $1.3 Billion Florida Tax Relief Bill?
DeSantis' $1.3 billion tax relief bill extends sales tax holidays and makes other tax cuts. Here's what you can buy tax-free — and when.
-
Letter from the Senior Digital Editor: Celebrating Pride
Kiplinger senior digital editor Alexandra Svokos writes at the start of Pride Month.
-
Stock Market Today: Stocks Soar After Jobs Data, Debt Ceiling Deal
The major benchmarks rallied hard into the weekend after a mixed May jobs report and end to debt ceiling drama.
-
Stock Market Today: Stocks Rally on Debt Ceiling News, Manufacturing Data
A slow start turned into a strong finish for stocks thanks to encouraging debt ceiling updates and the latest economic data.
-
Is Chevron Stock Set for a Rebound?
Chevron stock received its second analyst upgrade in as many days, boosting hopes for a recovery in the lagging energy major.
-
Stock Market Today: Stocks Close Lower Ahead of Key Debt Ceiling Vote
The major benchmarks spent most of Wednesday in the red as the House prepares to vote on the debt ceiling deal this evening.
-
Stock Market Today: Stocks Give Back Big Debt Ceiling Deal Gains
The major benchmarks opened solidly higher Tuesday after lawmakers announced a debt ceiling deal, but optimism faded into the close.
-
Stock Market Today: Stocks Jump on Debt Ceiling Progress
The major benchmarks rallied into the long weekend after lawmakers said they're making strides in debt ceiling negotiations.
-
Stock Market Today: Stocks Rise After AI Outlook Sparks Explosive Nvidia Rally
The Nasdaq and S&P 500 made impressive advances today after chipmaker Nvidia forecast record quarterly revenue on AI growth.
-
Is Nvidia Stock Just Getting Started?
Nvidia stock has more than doubled this year already, but analysts say explosive growth in AI gives NVDA plenty more upside ahead.
