December 15, 2017
Thursday, March 12, 2015

Wall Street bounces back in broad rally; bank shares gain

US stocks rose in a broad rally today, bouncing back from two days of losses, helped by a weaker dollar that eased worries about corporate profits and tempered the outlook on the timing of a rate increase by the Federal Reserve.

The day's gains lifted the Dow and S&P 500 back into positive territory for the year so far.

Banking shares rallied in the wake of the Federal Reserve's annual check-up on the industry's health. The S&P financial sector rose 2.2 percent and was the day's biggest gainer. A weak outlook from Intel, however, limited gains in the tech sector.

Retail sales unexpectedly dropped for a third month in February, which helped the euro rebound from a 12-year low versus the dollar. That pause in the dollar's recent rally helped ease worries about corporate profits and the Fed's rate outlook.

The Dow Jones industrial average rose 259.83 points, or 1.47 percent, to 17,895.22, the S&P 500 gained 25.71 points, or 1.26 percent, to 2,065.95 and the Nasdaq Composite added 43.35 points, or 0.89 percent, to 4,893.29.

The rally only represented a partial rebound after a recent bout of weakness, which has left the S&P 500 down 2.4 percent from its March 2 record closing high.

European shares held near fresh seven-year highs, weighed down by Sabadell after it made a bid for TSB, although better than expected earnings reports supported the market.

Spain's Banco de Sabadell fell 6.6 percent after making a takeover bid that valued British bank TSB at around $2.6 billion. TSB rose 24 percent.

Shares in German potash and salt miner K+S gained 7.5 percent and Dutch marine engineering company Boskalis added 5 percent after reporting better than expected results.

As Europe's earnings season draws to an end, Thomson Reuters StarMine data shows that companies have reported a 15.9 percent rise in quarterly profits as European firms start to reap the benefits of a weaker euro. That the biggest rise in European earnings since mid-2011 and well ahead of a 6.8 percent rise in US quarterly profits.

At the close, the FTSEurofirst 300 index of top European shares was flat at 1,574.72 points.

The index hit a fresh seven-year high of 1,581.42 points earlier in the session, following on from a 1.5 percent rise yesterday that had been fuelled by a drop in the euro.

The single currency has fallen by about 25 percent against the dollar over the past year, giving a major boost to European companies as roughly 50 percent of euro zone earnings come from outside the region.

Meanwhile, Japan's Nikkei share average posted its biggest daily gain in a month today as investors chased the market higher before the futures settlement, while hopes that Toyota Motor Corp may increase pay also lifted sentiment.

The Nikkei ended 1.4 percent higher at 18,991.11, a fresh 15-year closing high. In early afternoon trade, it touched as high as 19,008.13.

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Tags:  US  stock market  Europe  Nikkei  

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Edition No. 5055 - This publication is a property of NEFIR S.A. -RNPI Nº 5343955 - Issn 1852 - 9224 - Te. 4349-1500 - San Juan 141 , (C1063ACY) CABA - Director Perdiodístico: Ricardo Daloia