Yesterday Wal-Mart's misfortune became Wall Street's misfortune.  And as has so often been the case during the past several years, today Citigroup's fortunes became Wall Street's fortune as the financial giant turned in a glowing Q3 report that gave the Dow a big 217 point bounce.  This was despite the fact that several other companies turned in not so great reports.  It just goes to show that the environment is still a very nervous one and quite prone to knee-jerk reactions -- big sell offs at the slightest hint of bad news, big rallies at the slightest hint of good.  Or as today's expert stated, "There's a lot of cash on the sidelines, and we did break through to a new high since the August decline."  It wasn't just Citigroup; the entire financial sector jumped 2.3% despite JP Morgan's decline and there was also other good news.  Consumer prices had their biggest drop in eight months, inflation appears to be firming up, and the labor market continues to strengthen.  All in all, it was a day for optimism with investors anxiously awaiting any companies that show good Q3 earnings.  Volume was just a little below recent averages at 7 billion.

Markets | Thu Oct 15, 2015 6:37pm EDT

Wall Street jumps to eight-week high on financials, healthcare

BY CAROLINE VALETKEVITCH

DJ:  17,141.75  +217.00      NAS:  4,870.10  +87.25         S&P:  2,023.86  +29.62

REUTERS/LUCAS JACKSON

A tame inflation reading and strong earnings from Citigroup led investors to pile back into stocks on Thursday, pushing Wall Street to its best level in eight weeks.

Equities added to gains late in the session, and eight of the S&P 500 sectors registered increases of more than 1 percent. More than four stocks rose for every one that fell on both the New York Stock Exchange and the Nasdaq.

The S&P 500 health care index .SPXHC jumped 2.2 percent despite a disappointing forecast from HCA Holdings (HCA.N), which fell 5 percent to $72.21. The Nasdaq Biotech Index .NBI jumped 4.4 percent, rallying sharply before the close.

"There's a lot of cash on the sidelines, and we did break through to a new high since the August decline," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York. "Volume picked up as well, which is a strong indicator."

Citigroup (C.N) rose 4.4 percent to $52.97 after the third-biggest U.S. bank's results beat estimates, while Goldman Sachs (GS.N) was up 3 percent at $184.96, despite weak results.

The financial sector .SPSY jumped 2.3 percent, recovering from losses on Wednesday, when JPMorgan (JPM.N) results disappointed.

U.S. consumer prices declined the most in eight months as gasoline costs fell in September, but a rise in core CPI, which strips out food and energy costs, suggested inflation was starting to firm. Unemployment benefit claims fell in the last week, pointing to a strong labor market.

The data, following a weak retail sales report, added to uncertainty over the timing of an interest rate increase from the Federal Reserve.

The Dow Jones industrial average .DJI rose 217 points, or 1.28 percent, to 17,141.75, while the S&P 500 .SPX gained 29.62 points, or 1.49 percent, to 2,023.86, its highest level in eight weeks.  The Nasdaq Composite .IXIC added 87.25 points, or 1.82 percent, to 4,870.10.

Worries about the U.S. earnings outlook had pressured stocks earlier this week.

Also in the healthcare sector, insurer UnitedHealth (UNH.N) slipped 1.6 percent to $120.17 even though it reported a slightly better-than-expected profit in the third quarter.

Nike (NKE.N) rose 2.3 percent to $128.79. The world's largest sportswear maker said it expects revenue growth to be faster over the next five years.

Netflix (NFLX.O) slid 8.3 percent to $101.09, a day after the video-streaming service said U.S. subscriber additions came in below expectations for the third quarter. The stock weighed the most on the S&P.

After the bell, shares of Mattel (MAT.O) were down 2.4 percent at $22 following its results and guidance.

The S&P 500 posted 11 new 52-week highs and 7 new lows; the Nasdaq recorded 42 new highs and 41 new lows.

About 7.0 billion shares changed hands on U.S. exchanges, below the 7.6 billion daily average for the past 20 trading days, according to Thomson Reuters data.