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Wednesday, May 18, 2022

US stocks end higher boosted by oil, bank shares

US stocks end higher boosted by oil, bank sharesNew York: Wall Street stocks rose Wednesday, with energy shares boosted by higher oil prices and banking shares advancing on expectations of increased interest rates.

The Dow Jones Industrial Average gained 0.8 percent to close at 24,542.54.

The broad-based S&P 500 gained 1.0 percent to 2,697.79, and the tech-rich Nasdaq Composite Index jumped 1.0 percent to 7,339.91.

Petroleum-linked shares enjoyed a strong session after President Donald Trump’s decision to exit the Iran nuclear deal lifted shares of Dow members ExxonMobil, Chevron and other companies across the sector.

“A lot of investors have been underweight on energy and now see some stability on that sector,” said Nate Thooft, senior managing director at Manulife Asset Management.

Large banks such as Goldman Sachs and Bank of America gained 2.0 percent or more as the yield on the 10-year US Treasury again rose to 3.0 percent, raising expectations for higher interest rates that would boost bank earnings.

But Walmart slumped 3.1 percent after announcing it was buying a 77 percent stake in Indian online sales giant Flipkart for $16 billion. S&P shifted its outlook on the retail giant to “negative,” citing its increased spending to boost its online and global businesses.

In earnings news, Disney shed 1.8 percent after reporting a 23 percent jump in second-quarter profits to $2.9 billion, boosted in part by the success of the “Black Panther” movie. The entertainment giant faces the prospect of a possible bidding war over assets belonging to 21st Century Fox following reports Comcast is readying a bid.

Copyright APP (Associated Press of Pakistan), 2018

Source: Brecorder

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