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Stocks - Dow Turns Green as Banks Bounce After Recent Selloff

Published 05/14/2020, 01:02 PM
Updated 05/14/2020, 03:00 PM
© Reuters.

© Reuters.

By Yasin Ebrahim 

Investing.com – The Dow clawed back the bulk of its losses on Thursday, shrugging off another surge in jobless claims as financials climbed, led by bank stocks.

The Dow Jones Industrial Average rose 0.68%, or 157 points, but had been down by as many 570 points at the lows of the day. The S&P 500 gained 0.19%, while the Nasdaq Composite lost 0.65%.

Financials rose 1.3% as banking stocks found their footing after days of getting hammered amid growing fears that a protracted economic recovery could lead to further defaults.

JPMorgan Chase (NYSE:JPM) and Bank of America (NYSE:BAC) were up more than 2%, while Wells Fargo (NYSE:WFC)  jumped 6% following a report of speculation it could merge with Goldman Sachs (NYSE:GS).

On the economic front, investors had to contend with another surge in jobless claims as businesses have been forced to shut down amid government measures to contain the Covid-19 pandemic.

The U.S. Department of Labor reported Thursday that initial jobless claims were 2.981 million for the week ended May 9, above economists' forecasts of 2.5 million.

Just a day earlier, Federal Reserve Chairman Jerome Powell said he expected unemployment would likely peak over the next month. 

Energy also pushed the broader market off session lows, underpinned by rising oil prices after the International Energy Agency touted an improved outlook in the wake of easing coronavirus restrictions.

Elsewhere, Boeing (NYSE:BA) fell 0.7% after Delta Air Lines (NYSE:DAL) said it will "permanently retire" its fleet of 18 Boeing 777 aircraft by the end of the year as part of efforts to cut costs.

Delta lost 1.6%, American Airlines (NASDAQ:AAL) slipped 1.8% and United Airlines (NASDAQ:UAL) fell 3.8%

In tech, Amazon.com (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX) were among the FAANG stocks that managed to remain above the flatline, while Microsoft (NASDAQ:MSFT) fell 1% after it acquired telecommunications Metaswitch Networks.

Latest comments

“Cool aid” LOL!
DJ: a remote controlled bubble
I do like your money but i feel bad you keep getting your head kicked in. So ill help you again. Only smart money buys when it seems to defy logic. Its inside money. They are right you are wrong. Only sell this when everyone gets bullish because the worst is over. Then buy that break. Or keep paying me off the choice is yours.
I guess the cool aid is working better than predicted. wow
Good, more chances to withdraw
TRUMP POWELL AND ALL WALL ST BANKERS GO TO ***BURNT IN ***
Next headline "Stocks bounce back on hopes the worst of pandemic is behind us" Headline after that "Stocks plunge on fears that the worst of pandemic is ahead of us"
And now you know the type of journalism being fed to us. We want truth and clarity...what we receive is poorly edited agenda-driven opinion, or just simply BS and tripe.
So true... It's just a way of playing the weak minded traders into fear
You dont make any sense by predicting the S&P 500 will be at 3,000 or even avove.
You have to open and live with it. Otherwise the damage will last years to come. It just like a domino effect.
aaaaaaand it's gone. *****
Guys, just imagine how high the snp500 will be if the unemployment rise 50% insted of 25%. This market doesnt make any sense. Far from reality...
if bonds have 0% yield, how do you want people to hold their money, they have to put it in stocks or commodity
Why would anyone want to own bank stocks with all of the bad debt they are holding?
bad debt will always be terminated by central bank stimulus if needed
So the news reporters try their best to find a decend headline
I don't even think they have reporters. Just a library of headlines that they mix and match with a bunch of stale articles that they just recycle, and change the numbers
Rigging started
Top 3 headlines today: "Wall Street drops on trade war fears, economic worries"..."Gold Hits Two-Week High as Jobless Data Stoke Global Deflation Fears"...."Stocks - Dow Claws Back Losses as Banks Bounce After Recent Selloff"....it's pointless to even have a brain at this market. just a bunch of random movement by the crooks and click bait headlines
Anybody who tries to connect a headline with market movement should not invest in stocks. Why? Because they don’t have a clue what’s driving the market. Many studies have been done and Wall Street analysts (who are paid very little) are right only 17% of the time.
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