Stocks on Wall Street regained the losses they'd suffered yesterday as the market reassessed whether the problems faced by Deutsche Bank are serious enough to warrant the stock's recent decline. Once again, the direction of the broader market matched the direction of shares of Germany's largest lender, which sunk yesterday amid reports that certain clients may be pulling back some of their business with the bank's investment banking unit. Helping the stock rebound today was a report that the fine it may agree to pay to the U.S. related to its role in the financial crisis may not be as steep as feared.

Economic Events

In the U.S., personal income rose 0.2% in August, as expected. Consumer spending was unchanged, versus expectations for it to have grown 0.1%. The Chicago PMI rebounded 2.7 points to 54.2 in September, topping the 52.0 reading that was expected. The final September print from the University of Michigan survey showed consumer sentiment rose 1.4 points to 91.2, which was improved from the preliminary September reading and better than expected.

Company News

Shares of Deutsche Bank (DB) trading in New York gained 14% to close at $13.09 after Agence France-Presse reported, citing a source, that the bank is near a $5.4B settlement with the U.S. over its role in underwriting residential mortgage-backed securities in the run-up to the housing crisis. Previously, Deutsche Bank confirmed market speculation of an opening position by the DoJ of $14B, but said it had "no intent to settle these potential civil claims anywhere near" that figure.

Additionally, Deutsche Bank CEO John Cryan, seeking to reassure the bank's staff, has told employees that the departure of any hedge fund clients was "small" compared to its 20M total customers, Reuters reported. According to the letter to employees seen by Reuters, Cryan addressed reports of the departure of "some few" hedge fund clients and blamed "certain forces" and "speculation" for the media coverage.

Nutanix (NTNX) surged in its first day of being a publicly traded company. The initial public offering of the enterprise cloud company priced at $16 per share and the stock ended its first day of trading at $37.00 per share.

Major Movers

Among the notable gainers was Lexmark International (LXK), which jumped 13.75% after the printer and imaging products company said the Committee on Foreign Investment in the United States cleared the proposed buyout of the company by a Chinese consortium. Also higher was PTC Therapeutics (PTCT), which gained 21.2% after the company's partner Roche (RHHBY) began recruiting participants for a trial it is conducting to investigate a potential treatment for Spinal Muscular Atrophy patients.

Among the noteworthy losers was CalAmp (CAMP), which fell 15% after the company reported quarterly results and provided conservative guidance for the next quarter. Also lower were shares of Ophthotech (OPHT), which dropped 14.76% after Regeneron's (REGN) Phase II study evaluating aflibercept co-formulated with rinucumab, an anti-platelet-derived growth factor receptor beta antibody, in patients with neovascular age-related macular degeneration showed no benefit over aflibercept alone. Weighing in on the news, Cowen analyst Tyler Van Buren said that Regeneron's Phase 2 data for aflibercept co-formulated with rinucumab is negative for the class of anti-PDGFs as a whole. Regeneron shares slipped 1.07% following the report of the trial data.

Indexes

The Dow rose 164.70, or 0.91%, to 18,308.15, the Nasdaq gained 42.85, or 0.81%, to 5,312.00, and the S&P 500 advanced 17.14, or 0.8%, to 2,168.27.