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Tuesday's Bank Stocks: Sector up as fears over trade war subside

Bank shares rose along with the broader markets March 6, as investors' fears over a possible trade war appeared to ease and the Senate proceeded with a vote on a bill revising parts of Dodd-Frank.

The SNL U.S. Bank Index advanced 0.26% to 645.73, while the SNL U.S. Thrift Index edged up 0.68% to 970.44.

First Republic Bank was among those seeing substantial gains, climbing 3.48% to $97.44. The bank was upgraded by Barclays to overweight from equal weight, partly due to First Republic's focus on attracting younger customers. Barclays analyst Matthew Keating wrote in a note that First Republic has seen significant gains in student loan refinancing, which should continue rising due to its acquisition of the debt repayment platform Gradifi.

"FRC is extending its franchise from catering mainly to wealthy baby boomers to include the next generation of high potential earners through its student loan refinancing, professional loan, and Gradifi businesses," he wrote, adding that he expects 2018 will be a "record year for client acquisition."

Sterling Bancorp finished the day up 2.89% to $24.95, following its disclosure that it is acquiring the commercial vehicle and transportation financing services provider Advantage Funding Management Co. Inc.

Broader U.S. stock indexes increased, with the S&P 500 adding 0.26% to 2,728.12 and the Nasdaq Composite Index tacking on 0.56% to 7,372.01. The Dow Jones Industrial Average stayed largely flat, increasing 0.04% to 24,884.12.

JPMorgan Chase & Co. was the only one of the Big Four banks to see an increase, rising 0.09% to $115.16. Wells Fargo & Co. declined 0.90% to $57.07, Citigroup Inc. fell 0.48% to $74.06 and Bank of America Corp. slid 0.06% to $32.11.

The moves come as a bipartisan bill aimed at easing the regulatory process for smaller banks moves forward, with the Senate voting 67-32 to kick off debate on the measure. The Congressional Budget Office found in a new report the bill would increase federal deficits by $671 million over the next decade.

They also come as investors have become slightly less wary of the effects of planned tariffs that President Donald Trump announced on aluminum and steel — and whether they could result in a trade war. That is partly due to comments from top Republicans, including House Speaker Paul Ryan, that they disagree with Trump's approach.

Scott Anderson, chief economist at Bank of the West, said markets have seen "a little bit of a relief rally" over the past two days as some begin thinking Trump may water down those tariffs in the coming days. Other countries have signaled possible retaliations against the U.S., he added, but there is nothing concrete on that end yet either.

"It's not a slam dunk," he said.

Major movers today included: Cadence Bancorp., which increased 2.40% to $29.05; BofI Holding Inc., which surged 2.73% to $40.60; Green Bancorp Inc., which advanced 2.65% to $23.20; Union Bankshares Corp. which was up 2.50% to $39.01; Ameris Bancorp, which rose 2.45% to $56.45; Texas Capital Bancshares Inc., which added 2.45% to $94.10; MB Financial Inc., which climbed up 2.31% to $43.47; and SVB Financial Group, which finished the day up 2.30% to $266.11.

Live Oak Bancshares Inc., meanwhile, slid 2.15% to $27.35.

S&P Dow Jones Indices and S&P Global Market Intelligence are owned by S&P Global Inc.

Market prices and index values are current as of the time of publication and are subject to change.