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Market Rally Fades, Close (Mostly) in the Green

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Markets faded their rally this afternoon but still closed the session in the green today — all except the Nasdaq, which spent most of the day in the red. A sort of relief rally in regional banks on the assistance given Silicon Valley Bank (SVB) by First Citizens (FCNCA - Free Report) put something of a backstop behind what had been destabilizing the markets a bit over the past few weeks. The Dow gained +189 points, +0.59%, while the Nasdaq was -0.49% on the day. The S&P 500 grew a slight +0.19% but the small-cap Russell 2000 beat the field, +1.10% for the session.

We saw Big Banks rise on this latest from SVB, as well, helping put to bed any overheated fears of massive bank contagion, akin to what we saw during the financial crisis of 2008-09. Crude oil has also bounced back today, on a supply disruption in Northern Iraq and a couple trade issues. WTI is back above $73 per barrel, +5% on the day, while the Brent climbed +4% to $78 per barrel. Energy was the top-performing industry on today’s S&P — and is now back within its 200-day moving average. The industry is still trying to climb off the mat as the worst-performing sector of the S&P year to date.

Tomorrow morning we get new economic prints, in the form of Case Shiller home price index for January, Inventories and Trade Balance for February and U.S. Consumer Confidence for March. None of these reports will factor as heavily as Friday’s Personal Consumption Expenditures (PCE), but we do expect most or all of them to come in smaller than a month ago — especially Case Shiller, which posted +4.6% combined home price gains last time around and only expects +2.5% tomorrow. This would be a favorable number for helping keep inflation in housing under control.

After today’s closing bell, PVH Corp. (PVH - Free Report) (formerly Phillips-Van Heusen) reported fiscal Q4 earnings results. The parent of popular brands Tommy Hilfiger, Calvin Klein and others posted a big beat on its bottom-line: $2.38 per share versus $1.64 (though still down from $2.84 per share a year ago) on $2.4 billion in revenues, which outperformed the $2.34 billion in the Zacks consensus. Gross margins shrunk a bit and still-high inventories were challenges for the brand retailer in the quarter, but shares of the stock gained +10% in late trading.

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