U.S. Stocks Rise as Bank Shares Jump Before Stress Test Results

Oppenheimer Sees Capital Ratio Relief in Stress Tests

U.S. equities advanced as financial companies climbed before the release of more results from the Federal Reserve’s annual stress tests. Tech shares fluctuated in early trading.

The S&P 500 Index added 0.4 percent to 2,429 by 9:55 a.m. in New York as the Dow Jones Industrial Average increased 91 points to 21,403.

  • Financial stocks up 1.5% for third straight advance
  • Energy stocks up 0.4% with oil little changed
  • Tech shares down 0.3%; biggest laggard in early trading
  • Utility, real-estate shares little changed
  • Treasury yields rose for a second day following Fed Chair Janet Yellen’s indication that the U.S. economy can withstand higher interest rates; 10-year up 2.5 bps
  • POLITICS:
    • Senate Majority Leader Mitch McConnell may have bought himself some time by delaying a vote on his embattled health-care bill, but he faces a difficult and narrow path in trying to deliver on seven years of promises to repeal Obamacare
    • The North Atlantic Treaty Organization claimed further progress in meeting U.S. demands that allies foot more of the common security bill, saying European members and Canada will increase defense budgets for a third consecutive year in 2017
  • ECONOMY:
    • Goods-trade gap shrank to $65.9b (est. $66b) from $67.1b the prior month
    • Wholesale inventories rose 0.3% m/m (est. 0.2% gain)
    • Retail stockpiles climbed 0.6% m/m, most in four months
  • EARNINGS:
    • Pre-market Thursday: McCormick & Co (MKC), Constellation Brands (STZ), Acuity Brands (AYI)

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