U.S. Stocks Add to Rebound as Financial, Industrial Shares Rally

U.S. stocks climbed, paring more of Wednesday’s loss as investors assess the political scrutiny surrounding President Donald Trump.

The S&P 500 Index rose 0.7 percent to 2,381 at 10:15 a.m. in New York, while the Dow Jones Industrial Average added 0.5 percent to 20,762. Stocks rebounded yesterday, after a series of allegations involving Trump’s administration turned investors cautious and sent shares to their worst drop since September on Wednesday.

  • Industrial, energy and materials shares leading in early trading, all up at least 1%
  • Utility and real estate shares only group lower
  • 10-year Treasury up 2 bps
  • Bloomberg Commodity Index up 1.3%
  • A rotation out of American equities and into Europe is gaining pace
    • Investors withdrew $8.9 billion from U.S. stock funds in the week to May 17 -- a third straight period of redemptions -- while pouring $1.1 billion into European equity funds, Bank of America Merrill Lynch strategists led by Michael Hartnett wrote in a note, citing EPFR Global data
  • VIX poised for largest two-day drop in three weeks, at 12.1, after Wednesday’s surge sent the gauge to the highest in more than a month
  • Volume in S&P 500 38% above 30-day average
    • Volume elevated in every sector
  • POLITICS:
    • Trump told reporters on Thursday that he’s “very close” to picking someone to replace James Comey, whom he fired last week amid a federal investigation of Russia’s interference in the 2016 election
    • Former Connecticut Senator Joseph Lieberman, who served as the Democratic Party’s 2000 vice presidential nominee before becoming an independent, is one of his top choices
  • ECONOMY:
    • Fed funds traders pricing in 98% chance of interest rate hike next month
  • EARNINGS:
    • After-market Friday: none
    • Pre-market Monday: none

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