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Monday's Bank Stocks: Steel pushback pushes stocks up

Pushback on proposed steel tariffs was but one reason that investors had to push markets upward Monday, March 5.

The Dow Jones Industrial Average increased 1.37% to 24,874.76, the S&P 500 improved 1.10% to 2,720.94 and the Nasdaq Composite Index rose 1.00% to 7,330.70.

Equities rebounded from a series of selloffs last week driven in part by fears that U.S. President Donald Trump would spark a trade war after supporting steep tariffs on imported steel and aluminum. Monday opened with economic data that could indicate a slowing U.S. economy that could be further crimped by high tariffs impacting industries that use imported steel, and finished with a prominent Congressional Republican ally formally pushing back on the proposed tariffs and pressing Trump to reconsider. Investors seemed to see both as indications that the proposed tariffs could be weakened or abandoned.

U.S. nonmanufacturing sector activity grew at a slightly slower rate in February compared to the previous month amid weakened employment, latest data from the Institute for Supply Management, or ISM, showed. The lower nonmanufacturing index reading may have been caused by the change in the employment index, which dropped 6.6 percentage points to 55% from 61.6%.

Rep. Paul Ryan, R-Wis., also publicly called on President Trump to reconsider his decision to levy steep tariffs on steel and aluminum imports Monday afternoon. Ryan's public criticism may indicate there is "not a great deal of support" for the President's plan, on top of the market's selloff last week gauging the plan's poor reception, said Art Hogan, chief market strategist at Wunderlich Securities.

Hogan also pointed out several other factors that boosted markets on Monday, including strength in commodities and the U.S. dollar, little overhang from the Italian election and a looming monthly jobs number on Friday.

In banks, Citigroup Inc. grew 1.00% to $74.42, Wells Fargo & Co. expanded 0.31% to $57.59 and Bank of America Corp. added 1.58% to $32.13.

JPMorgan Chase & Co. jumped 1.54% to $115.06 and Capital One Financial Corp. increased 1.22% to $97.90. Both banks were named as potential partners for Amazon.com Inc. to offer a branded checking account product, a move that could offer them a bigger customer pool.

The fight between HomeStreet Inc. and Roaring Blue Lion Capital Management L.P., its activist shareholder, escalated. Roaring Blue Lion issued a press release on Monday accusing the bank of showing "bad faith and gumption" in declaring the firm's director nominees as invalid. HomeStreet rose 1.20% to $29.45.

In movers, Live Oak Bancshares Inc. added 2.76% to $27.95 and F.N.B. Corp. expanded 2.19% to $14.45.

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.