The stock market indexes all posted gains and closed near the highs of the day Friday. U.S. big bank stocks fell following Deutsche Bank's sell-off caused by a steep climb in the cost of credit default swaps, an insurance to cover debt default.
The 10-year U.S. Treasury yield shed 4 basis points to 3.38%.
The Dow Jones Industrial Average improved into the close, reversing to end with a gain of 0.4%. The Nasdaq rose 0.3% and also was off session lows. The S&P 500 rallied 0.6%. The Russell 2000 gained 0.9%.
The Dow climbed 1.1% and the S&P 500 pulled ahead 1.4% for the week. The Nasdaq showed dominance and posted a weekly gain of 1.7%.
NYSE and Nasdaq volume fell from Thursday, according to preliminary numbers.
The S&P 500 bounced back above its 200-day moving average. The Nasdaq held above its 50- and 200-day moving averages. The Nasdaq 100-tracking Invesco QQQ Trust ETF rose 0.4%.
The Innovator IBD 50 ETF fared worse than the major indexes, falling 1.2%.
Crude oil pulled back 1.1% to $69.22 per barrel. Bitcoin fell 2.4% to $27,860.
European stocks fell as contagion fears hit one of the continent's largest banks. The German DAX lost 1.7% as Deutsche Bank news rocked the index. The Paris CAC fell 1.7% in sympathy with the DAX. The London FTSE closed 1.3% lower.
Economic Data Shows New Orders Slowing
The February durable goods report said orders fell 1% vs. the expected 1.5% increase. The number excluding transportation orders was unchanged vs. the projected 0.3% rise. Core capital goods rose 0.2%.
The March flash S&P Global Purchasing Managers' Index (PMI) composite output index hit 53.3, representing a 10-month high. The manufacturing output index hit 51.0, also a 10-month high.
The manufacturing PMI rose to 49.3 vs. the 47.2 consensus forecast. The reading has been below 50 for the last four months, signaling falling private sector output.
The services index increased to 53.8 vs. the 50.3 forecast, the second consecutive above-50 reading. New orders at service providers saw their first gain since September.
Stock Market Today: Banks Under Pressure
Deutsche Bank gapped down on news of a sharp increase in its credit-default swaps. The German bank is the latest to come under the cloud of contagion fears. U.S.-traded shares pared losses and were down 3.1% in late trading.
JPMorgan Chase pulled back 1.5% and Bank of America erased earlier losses, rising 0.6%. Other big banks fell in sympathy with Deutsche Bank.
The Financial Select Sector SPDR ETF closed relatively unchanged. The SPDR S&P Regional Bank ETF pulled ahead 3% as regional banks saw signs of life.
Futures: Quiet Bank Weekend For Market Rally
Other Stock Market Action: Tommy Bahama Stock Sinks
IBD 50 stock Vertex Pharmaceuticals gained 3.2% and is working its way up to the 325.29 buy point of a flat base. Bernstein initiated coverage of the biotech Tuesday with an outperform rating and 344 price target. The company specializes in treatments for cystic fibrosis.
Packaged food maker Mondelez rose 2.7% and hit the 68.91 buy point of a flat base, but volume was light. The relative strength line has been on a steep uptrend since early February but is short of new highs.
Apparel retailer Oxford Industries gapped down 12.7% in heavy volume. The company reported better-than-expected Q4 earnings and sales, but gave disappointing Q1 earnings guidance.
The stock fell below its 50-day line, a likely sell signal. The company owns brands including Tommy Bahama and Lilly Pulitzer.
Regeneron Pharmaceuticals rose another 2.2% in heavy volume following yesterday's 6.8% gap-up. It remains in a buy zone from an 800.58 buy point.
The drug stock popped on Thursday's news of a successful final-phase study on its "smoker's lung" treatment, codeveloped with Sanofi. Sanofi stock gained 1.7% Friday.
Intuitive Surgical gapped up 4.9% after William Blair initiated coverage on the medical stock with an outperform rating. The stock is an S&P 500 big gainer today. The company manufactures the da Vinci robotic surgical system.
IBD 50 stock Monolithic Power Systems plunged 4.9%, sending it below the 21-day line. But shares remain above the 50-day average. The stock has been choppy as it forms the handle of a cup-with-handle base.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
