RE: ken/billy14 May 2020 23:48
Bloomberg
Economics
Stocks Shrug Off Gloomy Data Amid Rebound in Banks: Markets Wrap
By Rita Nazareth and Vildana Hajric
May 13, 2020, 5:36 PM EDT
Updated on May 14, 2020, 4:17 PM EDT
Financial shares lead gains in S&P 500, trimming 2020 plunge
U.S. jobless claims in millions again, higher than expected
Maitri Asset Management CIO Ankit Khandelwal thinks the markets have run up a lot.
U.S. stocks rebounded as a rally in beaten-down industries outweighed pessimism over bleak economic data and trade tensions.
In a very volatile session, banks led gains in the S&P 500 as Wells Fargo, JPMorgan and Bank of America jumped at least 4%. Energy shares joined a surge in crude. Both industries are still the worst performers this year -- tumbling more than 30%. The Dow Jones Industrial Average outperformed major benchmarks as American Express and Cisco Systems jumped. Treasuries rose.
Read: S&P Battles Back From Brink After Sliding Below Support Level
Earlier losses in stocks were driven by weak U.S. jobless claims and as President Donald Trump said he doesn’t want to talk to his Chinese counterpart Xi Jinping right now. While caution still prevails, some traders may be buying the dip after a sell-off that put the S&P 500 on pace for its worst week since March 20 -- or just before the start of a furious stock rally.
“We’ve had another day of bad news with jobless claims today,” said Matt Maley, chief market strategist at Miller Tabak. “In the last two months, we bounced back every time we pulled back like this and people don’t want to get too aggressive on the sell-side.”