MARKET SNAPSHOT: U.S. Stocks Snap 5-day Losing Streak, Post Largest Daily Gain This Month
13 February 2016 - 8:40AM
Dow Jones News
By Joseph Adinolfi and Sara Sjolin, MarketWatch
Friday's gains failed to avert a second straight weekly loss
U.S. stocks snapped a five-day losing streak Friday and logged
their largest daily gains so far this month, as battered bank and
energy shares led a rebound at the end of a turbulent week.
J.P. Morgan Chase (JPM) and Goldman Sachs Group (GS) were the
two top performers on the Dow Jones Industrial Average, as
financial shares found support after Deutsche Bank AG's
announcement that it would repurchase
(http://www.wsj.com/articles/deutsche-bank-to-buy-back-5-4-billion-in-debt-securities-1455284761)
$5.4 billion of its senior unsecured debt, analysts said.
"[Banks] are in much better shape than the market is
interpreting at this stage," said chief executive officer of
Bruderman Brothers.
Dow industrials finished 313.66 points, or 2%, higher at
15,973.84, while the S&P 500 index gained 35.70 points, or 2%,
to 1,864.78. Financial shares were up 4%, making that group the
best performing sector on the S&P, followed by materials, up
2.9%, and energy, up 2.6%. Every sector except for utilities was in
the green.
Meanwhile, the Nasdaq Composite (NDAQ) rose 70.67 points, or
1.7%, to 4,337.
Unfortunately, the gains weren't large enough to avert a second
straight weekly loss for all three main indexes. The Dow was down
1.4%, the Nasdaq lost 0.6% and the S&P 500 slid 0.8%.
Oil prices recorded their largest one-day rise in seven years
Friday, boosted by speculation about a possible production cut
(http://www.marketwatch.com/story/oil-prices-rally-5-after-more-jawboning-from-opec-members-2016-02-12)
by the Organization of Petroleum Producing Countries. Data showing
a drop in the North American rig count also supported prices.
Pursche said Friday's recovery was a repudiation of excessive
pessimism after a brutal week of trading. "Market sentiment has
gotten so bearish that it's just overdone," he said.
Stocks also benefited from a strong reading on consumer
spending. Retail sales rose 0.2% in January
(http://www.marketwatch.com/story/retail-sales-increase-02-in-january-2016-02-12),
beating expectations for a 0.1% increase from a survey of
economists polled by MarketWatch, while the 0.1% decline initially
reported for December was revised to show 0.2% growth.
The retail-sales figures suggest consumer confidence is on the
rise despite the recent volatility in global stock markets. "We've
been witnessing a steady increase in consumer confidence against a
backdrop of doom and gloom," said Jack Ablin, chief investment
officer at BMO Private Bank.
Stocks had an initial negative reaction to a survey from the
University of Michigan
(http://www.marketwatch.com/story/consumer-sentiment-weakens-in-february-university-of-michigan-says-2016-02-12)
showed consumer sentiment has softened in February, largely due to
a drop in its expectations component.
Read:5 signs we might already be in a bear market
(http://www.marketwatch.com/story/here-are-5-signs-we-might-already-be-in-a-bear-market-2016-02-11)
A recovery in oil prices helped boost energy shares and boost
investors' appetite for risky assets, analysts said.
Other markets: In Europe, stocks finished sharply higher
(http://www.marketwatch.com/story/european-stocks-finding-relief-but-weekly-slide-appears-intact-2016-02-12),
with the Stoxx Europe 600 index rebounding after falling to a
two-year low on Thursday. The sentiment was more downbeat in Asia,
where Japan's Nikkei 225 index slumped 4.8% to end with the worst
weekly drop since 2008
(http://www.marketwatch.com/story/japan-stocks-plunge-to-lowest-point-in-more-than-a-year-2016-02-11).
Gold gave up some gains
(http://www.marketwatch.com/story/gold-prices-slip-as-investors-embrace-risk-assets-2016-02-12)
after it jumped to its highest finish in a year
(http://www.marketwatch.com/story/gold-jumps-to-1-year-high-as-global-market-rout-spurs-safe-haven-buying-2016-02-11)
on Thursday. The dollar advanced against the euro and the yen .
Fed: New York Fed President William Dudley said the U.S. economy
is well-suited to absorb any shocks that might come along during a
speech on household borrowing and indebtedness.
Read:Have central banks lost market credibility?
(http://www.marketwatch.com/story/is-this-the-week-central-banks-lost-their-market-credibility-2016-02-11)
Movers and shakers: Shares of J.P. Morgan Chase & Co.
climbed after CEO Jamie Dimon bought 500,000 of his bank's shares
for $26 million
(http://www.marketwatch.com/story/ceo-jamie-dimon-bets-on-jp-morgan-chase-to-the-tune-of-26-million-2016-02-11)
on Thursday. The purchase is meant to stem the negative sentiment
clobbering bank stocks this year.
Groupon Inc.(GRPN) surged more than 26.6% after it beat
expectations
(http://www.marketwatch.com/story/groupon-swings-to-loss-results-beat-projections-2016-02-11)
late Thursday.
Pandora Media Inc.(P) fell 12.3% as investors disapproved of
plans to invest in an on-demand music service
(http://www.marketwatch.com/story/pandoras-spending-plans-dismay-investors-2016-02-11).
Freeport-McMoRan Inc. (FCX) rose 13.5%, making it one of the
largest gainers on the S&P 500, after it agreed to sell one of
its subsidiaries to U.S. Energy Corp.
Wynn Resorts (WYNN) rose 15.6% to led the S&P 500 after
strong revenue growth was reported in the company's Las Vegas
operations.
(END) Dow Jones Newswires
February 12, 2016 16:25 ET (21:25 GMT)
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