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Stocks trade higher at the open, regional bank stocks rally

Yahoo Finance Live’s Brad Smith breaks down how stocks are trading following the opening bell on Monday.

Video transcript

- We're coming up on the opening bell on Wall Street on this Monday. Our markets check here sponsored by tastytrade as we get that opening bell. And we are looking maybe for a little stabilization here in the markets. We shall see. We are looking at a higher open here this morning. Oh, look. There's Con Ed ringing the opening bell here in New York City, with hard hats to boot.

- Don't tell them where I'm at.

- So if we take a look at how stocks are opening up here this morning, we are looking at some gains here. So, again, are we going to see stabilization? There is not yet a big expected market catalyst until Friday's PCE report. But there could always be unexpected catalysts, of course, as we continue to watch the banks in the wake of First Citizen's buying of many of SVB's assets. The Dow, the S&P, and the NASDAQ all trading higher today. The Dow coming back the most. It's more heavily weighted towards some of the large cap banks. So maybe that's what's going on there, Brad.

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- Yeah. Taking a look at the major averages out of the gate. As you mentioned, across the board, we are higher. The Dow Jones Industrial average up by about 8/10 of a percent right now early in today's session, just about 45, 50 seconds into it. The Dow-- we'll populate this chart for you and give you a five-day look just so you can see some of the context with which we come into this week on and a little bit of last week's activity.

So with today's move higher over the past five days, a net positive, the NASDAQ composite, as of right now, you're seeing that higher by about 4/10 of a percent. And then additionally over the past five, days still holding on to some net gains there. The S&P 500, that too in positive territory, up by about 6/10 of a percent early in trade. Up by about 1.1% past five day period there since we were giving you a look at that.

I want to take a look at a few things. First and foremost, as we always do, we'll give you a look at the 11 S&P 500 sectors. We've got them pulled up here for you on the screen. We've really only got one laggard here out of the gate this morning. That is communications services down by about 3/10 of a percent, pulling up the caboose. But XLF financials, yeah, that's higher by about 1.7%, 1.8% right now.

Speaking of financials, we'll take a look at some of the regional banks, and then we'll take a broader look at some of the big banks here. Regional banks, not a red or square to be found right now. And if we were just kind of ranking this in terms of the move on the day, of course, one of the biggest moves that we're seeing there, First Republic Bank, up by about 28%.

Of course, off of continued movement that we're seeing in terms of the ability for some consolidation to take place, but, hopefully, some improvement in sentiment and making sure the customers and the loans are secured as well right now. But then, additionally, taking a look at the larger banks as well on the day. You're seeing green on the screen there across the board. One of the biggest movers that I'd seen pre market was another quasi-regional bank, if you will, PNC. Expanding, though, just a little bit more to my surprise. My own hometown bank growing up. Well, not so much hometown. But anyway, home state. Truist Financial. That's up by about 6 and 1/4% here on the day.

- Yeah. Do you have KeyCorp on that--

- That's a great question. I don't see KeyCorp. It would be KEY if it was there. It could be on the other one potentially.

- Yeah. Let me toggle back over to that.

- In any case-- there it is. It's upper left. Upper left. KeyCorp up 8% here this morning. Got upgraded over at Citi along with M&T Bank. Interesting there. Citi analysts are basically saying, we're not waiting for the feds to do more stress testing. We're going to do our own stress testing, which they did it of the regional banks. And they said in particular for KeyCorp and for M&T Bank that the risk-reward looks very appealing here at these levels.

- Yeah. They also had mentioned that M&T Bank was the most disciplined with its excess cash during period of low rates, strongest capital position as well of the regionals, and then went on to say, KeyCorp made some mistakes. But these are near-term headwinds. And the bank is set to benefit from the repricing of rate assets as well.