Small cap stocks are outperforming, driving a 0.9% gain in the Russell 2000. Relative strength from regional bank stocks has boosted the index after PacWest Bancorp (PACW 6.36, +0.63, +11.4%) disclosed it entered into a loan purchase and sale agreement with a unit of Kennedy-Wilson Holdings (KW 15.45, +0.39, +2.6%) to sell a portfolio of 74 real estate construction loans with an approximate $2.6 billion aggregate principal balance currently outstanding.
The SPDR S&P Regional Banking ETF (KRE) is up 1.7%.