U.S. Stocks Halt 5-Day Slide Amid Oil Rally; Treasuries Weaken

U.S. stocks halted a five-day slide that dragged global equities into a bear market, as oil rebounded from a 12-year low and bank shares surged the most in five months. Treasuries had the biggest drop of the year.

The Standard & Poor’s 500 Index pared a weekly loss amid data showing higher retail sales. Lenders rallied after JPMorgan Chase & Co.’s Jamie Dimon said he bought more shares in the bank, while Commerzbank AG’s results helped European equities rebound from the lowest level since 2013. The yield on 10-year Treasuries climbed for the first time in six days. Crude topped $ 29 a barrel in New York.

Equity markets rebounded after a torrid week when investors questioned whether central banks have the tools to shore up the global economy. Federal Reserve Chair Janet Yellen said the Fed was assessing the impact of the swings in the markets on the economy, while Japanese policy has failed to stem a rout in equities as the yen strengthens. The gains in U.S. retail sales were tempered by a report showing weakening consumer sentiment.

The Standard & Poor’s 500 Index climbed 1.5 percent at 12:55 p.m. in New York, headed for its biggest gain in two weeks. The jump trimmed the week’s loss to 1.2 percent. U.S. markets are closed Monday for the Presidents Day holiday.

Source: Bloomberg


U.S. Stocks Rebound From 5-Day Drop on Data Before Fed Minutes

The Standard & Poor’s 500 Index rose the most in three weeks, halting a five-day slump, as data showed the economy continues to strengthen before the release of minutes from the Federal Reserve’s latest meeting.

Stocks extended gains as lawmakers in Chancellor Angela Merkel’s coalition said Germany is leaving the door open to debt-relief talks with Greece’s next government, signaling a more flexible stance than her administration has taken publicly.

The Standard & Poor’s 500 Index added 1.1 percent to 2,024.03 at 12:14 p.m. in New York. The benchmark gauge plunged 4.2 percent in five days and fell 2.7 percent for the worst start to the year since 2008. The Dow Jones Industrial Average climbed 175.19 points, or 1 percent, to 17,546.83. Trading in S&P 500 companies was 14 percent above the 30-day average for this time of the day.

Minutes from the Dec. 16-17 Federal Open Market Committee at 2 p.m. Washington time may provide clues on the timing of an interest-rate increase. The Fed pledged to be patient in its approach to raising rates, while Chair Janet Yellen said after that meeting the central bank will probably hold rates near zero through at least the first quarter.

Source : Bloomberg