Daily Market Color March 29, 2021Equities Mixed, Yields Rise Amid Archegos Capital Fallout DJIA closes at record highs, financials weigh on the S&P The DJIA finished the day on another record high on continued optimism of opening economies and vaccination programs opening to more of the population. President Biden announced that 90% of adults will be eligible for vaccinations in April. The S&P had modest declines from its record close on Friday due to investors weighing the impact on financial stocks from the Archegos Capital fallout. Rates increased across the curve with the 10y closing at 1.71%. Commercial loan growth continues to struggle As the first quarter is nearing a close, both large and small banks struggle to grow their respective commercial loan portfolios in 2021. Large banks have been hit hardest with C&I and CRE both seeing negative annualized growth in their commercial books at 2.66% and 3.62%, respectively. Small banks have faired slightly better in their commercial portfolios with support from the PPP program. Liquidity continues to be a double-edged sword for banks of all sizes as large deposit inflows sit on the sidelines as loan growth struggles to gain momentum. Dallas Fed Activity Index hits the highest level on record The Texas Manufacturing Outlook Survey activity index increased 12 points in March to 28.9 with expectations for future activity remaining positive within the survey. The survey also saw the index for prices of raw materials increase to 66.0, up from 57.4.
