NEW YORK REPORT
US stocks rose yesterday after quarterly results from insurer Travelers and regional bank PNC Financial gave a boost to financial stocks.
Financials were among the top gainers after insurer Travelers posted gains after it raised its full-year outlook and regional bank PNC Financial Services Group shares jumped 12.7 per cent to $50.65 on far better-than-expected quarterly earnings.
Adding to the positive tone, New York Fed President William Dudley said the Federal Reserve may not lose money on the emergency programs it put in place to fight the financial crisis.
The S&P financial index added 2.9 per cent and the KBW Bank Index jumped 3.4 per cent.
Solid earnings from several companies, including Dow components 3M, AT&T and McDonald’s lent credence to the idea that corporate profitability has stabilised.
After the closing bell, online retailer Amazon.com posted earnings above expectations and its shares shot up almost 15 per cent to $107.38 in extended trading.
The Dow Jones industrial average gained 131.95 points, or 1.33 per cent, to 10,081.31. The Standard & Poor’s 500 Index rose 11.51 points, or 1.06 per cent, to 1,092.91. The Nasdaq Composite Index added 14.56 points, or 0.68 per cent, to 2,165.29.