New York Report: Upbeat data helps to drive Wall St higher
US stocks rose yesterday, after a batch of economic data pointed to an improving economy and investors reassessed Fed Chair Janet Yellen’s comments that had fueled speculation of an earlier-than-expected rate hike by the central bank.
After several weeks of soft economic data attributed by many investors to harsh winter weather conditions, labor market data on Thursday showed the number of Americans filing for jobless benefits hovered near three-month lows last week. A report from the Federal Reserve Bank of Philadelphia showed that factory activity in the Mid-Atlantic region rebounded in March, suggesting economic momentum may be on the upswing. “I didn’t see anything that had me jumping for joy, but it seems more like the smoldering, slowly improving economy,” said Stephen Massocca, managing director of Wedbush Equity Management.
Financial shares, which are tied to the pace of economic growth, were among yesterday’s biggest gainers, with the S&P financial sector index up 1.7 per cent. After the close, the Federal Reserve said 29 out of 30 major banks met the minimum hurdle in its annual health check.
JPMorgan Chase gained 3.1 per cent to $60.11, rising above $60 for the first time since April 2000. Citigroup advanced 2.6 per cent to $50.22.
The Dow Jones industrial average rose 108.88 points or 0.67 per cent, to end at 16,331.05. The S&P 500 gained 11.24 points or 0.60 per cent, to finish at 1,872.01. The Nasdaq Composite added 11.684 points or 0.27 percent, to close at 4,319.286.