US STOCKS-Facebook lifts S&P 500 and Nasdaq as Treasury yields pause

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* FedEx jumps as profit soars on pandemic-fueled demand
* Banks drop as Fed to let leverage exemption expire
* Nike falls after sales miss estimates
* Indexes: Dow -0.43%, S&P 500 +0.14%, Nasdaq +0.74%

(Updates with afternoon trade)
By Noel Randewich
March 19 (Reuters) - The S&P 500 and Nasdaq rose on Friday,
lifted by Facebook and energy shares as U.S. Treasury yields
took a break from a recent surge.
Reversing a recent trend, so-called growth stocks mostly
outperformed value stocks viewed as more likely to outperform as
the economy recovers from the coronavirus pandemic.
The yield on U.S. 10-year notes US10YT=RR , which has risen
sharply in the past seven weeks on growth expectations, hovered
near a 14-month peak at $1.742%. US/
"What we see today is a more stable rate environment across
the curve after multiple weeks of rising interest rates, and we
are seeing some degree of reversal of leadership in the equity
market," said Bill Northey, senior investment director at U.S.
Bank Wealth Management in Minneapolis.
Facebook Inc FB.O rose 4.1%, providing the biggest boost
to the Nasdaq and the S&P 500, after Chief Executive Mark
Zuckerberg said Apple Inc's AAPL.O imminent privacy policy
changes on ad sales would leave the social network in a
"stronger position."
The S&P 500 energy index .SPNY rose about 1%, following
the price of oil higher as it rebounded from a sell-off earlier
in the week related to a new wave of coronavirus infections
across Europe. The S&P 500 banks index .SPXBK dropped 1.4% after the U.S.
Federal Reserve said it would not extend a temporary capital
buffer relief put in place to ease a pandemic-driven stress in
the funding market. "Banks have had such a significant up move this year and
this news has only acted as a catalyst for profit taking," said
Art Hogan, chief market strategist at National Securities in New
York.
Optimism about a $1.9 trillion fiscal package and the Fed's
promise to maintain its ultra-loose policy stance for years has
accelerated a shift into economy-linked stocks, powering the S&P
500 and the Dow to record levels this week.
However, the Nasdaq is still about 6% below its Feb. 12
all-time closing high as technology and high-growth stocks have
lost favor in recent months, with their valuations looking less
attractive as Treasury yields rise.
The S&P 500 growth index rose 0.4%, outperforming the value
index's 0.1% dip.
Market trading volumes and liquidity were expected to rise
on Friday due to "quadruple witching," the quarterly
simultaneous expiration of U.S. options and futures contracts on
stocks and indexes.
Several bond managers believe the recent pace of the rise in
yields has been unsettling and also worry the market could be
viewed as disorderly if the momentum continues.
The Dow Jones Industrial Average .DJI was down 0.43% at
32,719.53 points, while the S&P 500 .SPX gained 0.14% to
3,921.1.
The Nasdaq Composite .IXIC added 0.74% to 13,213.88.
FedEx Corp FDX.N rallied about 6% after the U.S. delivery
firm said quarterly profit jumped more than expected on higher
prices and surging volume from pandemic-fueled e-commerce
deliveries during the holiday shipping season. Nike Inc NKE.N shed almost 4% after the sports apparel
maker missed quarterly sales estimates due to shipping issues
and a pandemic-related slump at brick-and-mortar stores.
Advancing issues outnumbered declining ones on the NYSE by a
1.31-to-1 ratio; on Nasdaq, a 1.64-to-1 ratio favored advancers.
The S&P 500 posted 12 new 52-week highs and no new lows; the
Nasdaq Composite recorded 78 new highs and 21 new lows.