Thursday, October 21, 2021

Global Market Square

By on March 19, 2021

The U.S. stock market ended the week with mixed results, while the Nasdaq rose sightly, the primary driver of losses in the Dow Jones and the S&P 500 was bank stocks.

The Federal Reserve announced that the temporary change to its supplementary leverage ratio, or SLR, for bank holding companies would expire as scheduled on March 31. Additionally, the Fed will seek comment on measures to adjust the SLR shortly. The SLR was implemented in 2014 as an additional capital requirement.

As we review some of the top U.S. and Puerto Rico banks, we note their closing prices:

  • Goldman Sachs (GS) closed at $344.45, down $3.55
  • JPMorgan Chase (JPM) closed at $154.62, down $3.03
  • Morgan Stanley (MS) closed at $82.61, down $1.33
  • Popular Inc. (BPOP) closed at $72.05, down $0.51
  • First Bancorp. (FBP) closed at $12.19, up $0.15
  • OFG Bancorp (OFG) closed at $22.96, up  $0.17

The week’s theme seemed to be the Fed and its monetary policy action surrounding economic projections, inflation expectations and job growth.

As we have stated, volatility will continue in the markets as investors rotate stocks further away from high-priced growth stocks in favor of economically sensitive value stocks. 

Wall Street summary for March 19, 2021:

  • The Dow Jones Industrial Average closed at 32,621.97, down 234.33 points, or 0.71%.
  • The Standard & Poor’s 500 closed at 3,913.10, down 2.36 points, or 0.06%.
  • The Nasdaq Composite Index closed at 13,215.24, up 99.07 points, or 0.76%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,485.94, up 5.01 points, or 0.2%.
  • The U.S. Treasury 10-year note closed at 1.74%
  • The U.S. Treasury 2-year note closed at 0.16%.

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