NEW YORK -- U.S. stocks climbed again Wednesday as quarterly results from JPMorgan Chase gave banks a big lift. Economic news from China powered industrial and technology companies in the U.S. and stock exchanges overseas.
JPMorgan Chase, the largest bank in the U.S., led a rally in financial stocks after its first-quarter results came in better than analysts expected. Railroad operators and auto parts suppliers also gained ground, while makers of consumer goods struggled. Gains over the past two days have brought stocks to their highest levels of 2016.
Julian Emanuel, U.S. equities and derivatives strategist for UBS, said it didn't take much to send banks, the worst-performing sector in the market this year, higher.
"Bank stocks have been so beaten up that any good news, either on better credit conditions driven by higher energy prices or news on cost cutting, is likely to underpin those stocks," he said.
The Dow Jones industrial average jumped 187.03 points, or 1.1 percent, to 17,908.28. The Standard & Poor's 500 index rose 20.70 points, or 1 percent, to 2,082.42. The Nasdaq composite index advanced 75.33 points, or 1.6 percent, to 4,947.42.
JPMorgan, the largest bank in the U.S. and the first to report its earnings, said its first-quarter profit fell because of weak results in its investment-banking business. Its profit and revenue were bigger than analysts expected, however, and the stock rose $2.51, or 4.2 percent, to $61.79. Bank of America picked up 52 cents, or 3.9 percent, to $13.79, and Wells Fargo rose $1.26, or 2.6 percent, to $49.03. Citigroup jumped $2.35, or 5.6 percent, to $44.25.
Banks have slumped this year because investors are worried they will take big losses on loans to energy companies, which did hurt JPMorgan's results. Low interest rates are also affecting bank stocks because they reduce the profits banks can make on loans.
Railroad operator CSX rose $1.05, or 4.2 percent, to $26.03. The company's profit fell as demand for coal got weaker and CSX hauled less freight, but expenses fell, partly because fuel costs dropped. CSX said it plans to cut more spending.
Other railroad stocks surged. Union Pacific rose $2.08, or 2.6 percent, to $81.72, and Norfolk Southern rose $2.42, or 3.1 percent, to $81.14.
Industrial stocks and tech stocks rose on reports that exports from China grew 11.5 percent in March compared with a year earlier. That was the first annual gain since June, and it's a sign of life from China's slowing economy. Shares of heavy-equipment maker Caterpillar rose $3.03, or 4 percent, to $79.13, and engine-maker Cummins climbed $5.90, or 5.5 percent, to $113.70.
Shares of consumer-goods makers also fell. The Commerce Department said retail sales fell a little in March, although the Federal Reserve said overall consumer spending grew a bit in February and March. Americans have been cautious about their spending this year even though gasoline prices are low and jobs are growing. Tobacco company Reynolds American fell $2.11, or 4.1 percent, to $49.15, and Altria fell $1.75, or 2.7 percent, to $62.07.
U.S. crude slipped 41 cents, or 1 percent, to $41.76 a barrel in New York. Brent crude, the benchmark for international oil pricing, fell 51 cents, or 1.1 percent, to $44.18 a barrel in London.
Bond prices rose. The yield on the 10-year U.S. Treasury note slipped to 1.76 percent from 1.78 percent. The dollar rose to 109.25 yen from 108.53 yen and the euro fell to $1.1285 from $1.1397.
Business on 04/14/2016