Markets |
Wall St ends up; financials gain with bond yields
DJ: 18,076.27 +64.33 NAS: 5,099.23
+22.71 S&P: 2,114.07
+4.47
REUTERS/LUCAS
JACKSON
U.S. stocks rose on Wednesday, helped by optimism that
Greece was close to an agreement to avoid default and as further gains in bond
yields lifted financials.
The S&P financial index .SPSY climbed 0.7 percent and was
among the day's top sector performers as U.S. benchmark Treasury debt yields jumped to seven-month highs,
extending recent gains.
Adding to the day's upbeat tone, Greece's international creditors signaled they were ready
to compromise to avert a default even as Athens indicated it might skip an IMF
loan repayment due this week.
"Yields going higher
is a net positive for all of the financials. Higher yields on fixed income
translate into higher rates and that increases the net interest margin for
financials," said Michael James, managing director of equity trading at
Wedbush Securities in Los Angeles.
Economic data bolstered the view the Federal Reserve may
consider raising interest rates later this year, including reports showing the
U.S. trade deficit narrowed in April on a drop in imports and private sector
jobs in May.
The Dow Jones industrial
average .DJI rose 64.33 points, or 0.36 percent, to
18,076.27, theS&P 500 .SPX gained 4.47 points, or 0.21 percent, to
2,114.07 and the Nasdaq Composite.IXIC added 22.71 points, or 0.45 percent, to
5,099.23.
The Fed, in its Beige Book report, said U.S. economic activity expanded from early April
to late May and growth was expected to continue at a "modest" to
"moderate" pace.
The consumer discretionary index .SPLRCD rose 0.7 percent.
Ten-year bond yields have risen about 28 basis points in three
days, their biggest rise in a comparable period in nearly two years. While that
boosted financials, it weighed on utilities index .SPLRCU for a second day. The
index was down 1.4 percent.
Logistics company C.H. Robinson (CHRW.O)
jumped 5.5 percent to $64.62 and was the biggest daily percentage gainer in the S&P 500. It also lifted the Dow
Jones transportation average .DJT, which was up 1.2 percent, bouncing back from
near correction territory last week.
Wendy's (WEN.O) rose
3.3 percent to $11.47 after the hamburger chain said it would buy back $1.4 billion
of shares, including some from Nelson Peltz's Trian Group, its largest
shareholder.
Advancing issues outnumbered declining ones on the NYSE by 1,548
to 1,503, for a 1.03-to-1 ratio; on the Nasdaq, 1,908
issues rose and 863 fell for a 2.21-to-1 ratio favoring advancers.
The S&P 500 posted 11 new 52-week highs and 4 new
lows; the Nasdaq Composite 151 new highs and 21 new
lows.
About 6
billion shares changed hands on U.S. exchanges, below the 6.2 billion
daily average for the last five sessions, according to BATS Global Markets.
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