U.S. Stocks Rebound With Banks as Crude Advances: Markets Wrap

  • Dow average halts eight-day slide as lenders pace gains
  • Treasuries edge higher; crude climbs as Libya closes pipeline

Jim Rogers Calls Russia His Favored Emerging Market

U.S. stocks rose for just the second time in nine sessions, as financial shares rebounded from a six-week low after a spike in consumer confidence rekindled optimism in the strength of the American economy. Treasuries fell and the dollar rose the most in four weeks.

Banks slammed by concern Donald Trump would have trouble getting regulatory roll-backs through Congress rallied Tuesday as investors shifted focus from policy uncertainty to data showing consumers more upbeat than any time since 2000. Energy producers advanced as crude topped $48 a barrel. Ten-year Treasury yields climbed above 2.4 percent.

While Friday’s failure by Republicans to pass health-care reform rattled the reflation trade, attention turned Tuesday to data bolstering arguments that the world’s largest economy is on firm footing. Washington also stepped up promises to proceed with the tax reform that Wall Street has focused on since the election, while Federal Reserve officials reiterated that two more rate hikes in 2017 seem appropriate.

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Here are this week’s key events:

  • The start of two years of Brexit negotiations will be formally triggered by a letter from Theresa May, U.K. prime minister, on Wednesday.
  • Proposals to design and build Trump’s promised 2,000-mile border wall between the U.S. and Mexico are due March 29.
  • Hungary, Mexico, South Africa and Thailand are among countries setting interest rates.
  • Samsung Electronics Co. will introduce its Galaxy S8 smartphone, the company’s first new mobile phone since the debacle with the Note 7 battery fires that led to its recall.

Here are the main moves in markets:

Stocks

  • The S&P 500 rose 0.7 percent to 2,358.59 at 4 p.m. in New York. The Dow Jones Industrial Average added 173 points to halt an eight-day losing streak.
  • Financial firms in the S&P 500 jumped 1.5 percent, with Goldman Sachs Group Inc. rising 1.6 percent to pace gains in large-cap lenders.
  • The Stoxx Europe 600 Index rose 0.6 percent, led by auto and media companies.
  • The MSCI Emerging Market Index added 0.4 percent.

Currencies

  • The Bloomberg Dollar Spot Index added 0.5 percent to halt a two-day slide.
  • The euro weakened 0.3 percent to $1.0828, while the yen lost 0.1 percent to 110.80.
  • The rand slid 1.7 percent to 12.963 against the dollar following Monday’s 2.5 percent decline. Prior to this drop, the currency had gained 9.5 percent year-to-date, making it a top emerging-market performer.

Bonds

  • Yields on 10-year Treasuries rose four basis points to 2.41 percent after falling three basis points on Monday.
  • Corporate bond issuance resumed after a three-day hiatus, with seven domestic names slating offerings.
  • European bonds mostly rose, with 10-year German yields falling two basis points to 0.38 percent.

Commodities

  • Gold futures matched the highest close in a month, settling unchanged at $1,258.80 on the Comex in New York. 
  • Crude rose on reports Libya has curbed shipments from its biggest field, tempering concerns about the global supply glut.
  • West Texas Intermediate added 1.3 percent to settle at $48.37 per barrel following a 0.5 percent drop the previous day.

— With assistance by Mark Shenk, and Elizabeth Stanton

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