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Monday's Bank Stocks: Strong jobs number overshadows trade talks

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Monday's Bank Stocks: Strong jobs number overshadows trade talks

Investors ignored trade talks Monday, June 4, and focused instead on last week's strong job numbers.

The Dow Jones Industrial Average grew 0.72% to 24,813.69, the S&P 500 improved 0.45% to 2,746.87 and the Nasdaq Composite Index added 0.69% to 7,606.46.

Investors were undeterred by escalating trade rhetoric between the United States and China over the weekend, and continued Friday's momentum following strong job numbers to push markets higher from the opening bell. On June 1, the U.S. Labor Department released a jobs report showing higher-than-expected payroll gains and a continued decline in unemployment. Total nonfarm payrolls increased by 223,000 in May, above Econoday's consensus estimate of 190,000. Unemployment, meanwhile, ticked down to 3.8%.

However, it remains to be seen whether the divergent trade rhetoric between nations over the weekend will escalate further ahead of the G-7 summit June 8, and if it will eventually translate into market losses.

In financials, the Commodity Futures Trading Commission on June 4 advanced a proposal to tweak the Volcker rule, though one commissioner voted against it. Five federal agencies have proposed simplifying requirements under the rule, which bans proprietary trading at banks and limits their investments in hedge funds and private equity firms. The CFTC's vote marked the first dissent among regulators on the issue, with Commissioner Rostin Behnam calling the proposal misguided.

The CFTC's vote comes after the Federal Reserve Board of Governors and the Federal Deposit Insurance Corp. unanimously approved the plan last week. Comptroller of the Currency Joseph Otting also signed off on the changes.

The SNL U.S. Bank Index was up 0.41% to 618.43, and SNL U.S. Thrift Index finished the day 0.97% higher at 987.35.

JPMorgan Chase & Co. ticked up 0.046% to $108.45, Citigroup Inc. increased 0.09% to $67.34, Wells Fargo & Co. grew 0.26% to $54.83 and Bank of America Corp. closed flat at $29.40.

In movers, Preferred Bank grew 2.99% to $66.09, BofI Holding Inc. jumped 3.47% to $42.95 and Hope Bancorp Inc. expanded 2.89% to $18.52. Flagstar Bancorp Inc. declined 1.14% to $34.76, while Metropolitan Bank Holding Corp. slipped 0.23% to $52.58.

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.