US close: Banks rise on Fed approval, surging dollar eases
US stocks rebounded from a two day losing streak on Thursday, as the dollar retreated from a 12 year high and a number of banks were approved by the Federal Reserve to raise dividends and buy back shares.
At close, the Dow Jones Industrial Average was up 1.47% to 17,895.22, the S&P 500 climbed 1.3% to 2,065.95 and the Nasdaq Composite jumped 0.89% to 4,893.29.
Financial stocks gained banks passed the Fed's "stress tests", which assess whether lenders have sufficient reserves to endure a major economic downturn.
Citigroup rose 3%, to $53.91 after revealing that it would buy back $7.8bn in stock and raise its quarterly dividend to 5 cents from 1 cent. Morgan Stanley gained % percent, to $37.03 after announcing a $3.1bn stock buyback and raising its dividend to 15 cents from 10 cents.
Meanwhile, as the European Central Bank and Bank of Japan tried to stimulate their economies, the Fed edged closer to raising rates, driving the dollar higher against the euro and the yen.
"It's the pullback in the dollar that's cheering investors," said Peter Cardillo, chief market economist at Rockwell Global Capital. "The frenzy that we saw in the foreign exchange markets has, at least for today, calmed down."
The euro recovered somewhat, trading 0.5 percent higher at $1.0617, as the dollar fell to 121.37 yen.
Data largely disappointed, as initial US unemployment claims dropped by an outsized 36,000 over the week ended 7 March, to reach 289,000 according to the Department of Labor. The consensus estimate had been for a reading of 305,000, while the figure for the previous week was revised up by 5,000 to 320,000.
Furthermore, US retail sales declined for the third month in a row in February, as Americans continued to shy back from spending the money saved by the slump in gasoline prices. Retail sales volumes fell by a seasonally adjusted 0.6% last month, after a 0.8% decline in January and a 0.9% drop in December, defying expectations for an increase of 0.3%.
“Retail sales numbers were much weaker than anyone expected, so that gives the Fed more leeway to hold off before raising rates, and that’s why the market is rallying,” said Larry Swedroe, director of research for BAM Alliance.
It is widely expected that the Fed will raise short-term rates before the end of the year, and the Fed has emphasized that it will be watching economic data closely.
In company news, Acadia Pharmaceuticals' shares plummeted 22% after the drug maker said it would postpone submitting a new-drug application for Nuplazid until later this year.
Shares of Box Inc. dropped 11% after the company, which launched its IPO in January, posted a wider-than-expected loss as a result of higher costs.
Krispy Kreme Doughnuts fell 6.5% after the company revealed disappointing sales growth.
US crude prices declined, settled 2.3% lower at $47,05 after an increase in US supplies spanning nine consecutive weeks.. Gold prices gained slightly for the first time in three sessions, up 0.1% to $1,151.90.
S&P 500 - Risers
Morgan Stanley (MS) $37.09 +6.12%
Mylan Inc. (MYL) $62.30 +5.59%
Mattel Inc. (MAT) $25.66 +4.20%
Walt Disney Co. (DIS) $107.17 +4.16%
Capital One Financial Corp. (COF) $81.45 +4.12%
Dollar General Corp (DG) $74.28 +3.96%
Joy Global Inc. (JOY) $39.46 +3.76%
Regions Financial Corp. (RF) $9.89 +3.67%
PNC Financial Services Group (PNC) $96.63 +3.55%
Zions Bancorporation (ZION) $28.04 +3.55%
S&P 500 - Fallers
Peabody Energy Corp. (BTU) $5.82 -4.90%
Intel Corp. (INTC) $30.80 -4.73%
Denbury Resources Inc. (DNR) $7.60 -3.92%
CONSOL Energy Inc. (CNX) $27.61 -3.80%
Range Resources Corp. (RRC) $45.40 -3.62%
Avon Products Inc. (AVP) $8.20 -3.30%
Tesoro Corp. (TSO) $84.27 -2.78%
Chesapeake Energy Corp. (CHK) $13.92 -2.59%
Ensco Plc. (ESV) $21.90 -2.41%
Microsoft Corp. (MSFT) $41.02 -2.29%
Dow Jones I.A - Risers
Walt Disney Co. (DIS) $107.17 +4.16%
Goldman Sachs Group Inc. (GS) $189.95 +3.13%
Home Depot Inc. (HD) $116.10 +2.68%
American Express Co. (AXP) $81.56 +2.66%
United Technologies Corp. (UTX) $121.24 +2.45%
Verizon Communications Inc. (VZ) $48.73 +2.20%
Travelers Company Inc. (TRV) $107.83 +2.04%
Unitedhealth Group Inc. (UNH) $114.88 +1.92%
JP Morgan Chase & Co. (JPM) $61.37 +1.88%
Visa Inc. (V) $269.58 +1.82%
Dow Jones I.A - Fallers
Intel Corp. (INTC) $30.80 -4.73%
Microsoft Corp. (MSFT) $41.02 -2.29%
Chevron Corp. (CVX) $102.42 -1.08%
Cisco Systems Inc. (CSCO) $28.24 -0.07%
Nasdaq 100 - Risers
Charter Communications Inc. (CHTR) $193.46 +5.94%
Mylan Inc. (MYL) $62.30 +5.59%
Mattel Inc. (MAT) $25.66 +4.20%
Tractor Supply Company (TSCO) $87.25 +2.97%
Expedia Inc. (EXPE) $91.39 +2.74%
Dollar Tree Inc (DLTR) $80.89 +2.61%
Paychex Inc. (PAYX) $50.26 +2.59%
O'Reilly Automotive Inc. (ORLY) $209.55 +2.58%
PACCAR Inc. (PCAR) $62.36 +2.25%
Comcast Corp. (CMCSA) $59.33 +2.19%
Nasdaq 100 - Fallers
Intel Corp. (INTC) $30.80 -4.73%
Microsoft Corp. (MSFT) $41.02 -2.29%
Garmin Ltd. (GRMN) $48.67 -1.72%
Tesla Motors Inc (TSLA) $191.07 -1.38%
QUALCOMM Inc. (QCOM) $69.37 -1.28%
Illumina Inc. (ILMN) $188.11 -1.12%
NetApp Inc. (NTAP) $37.40 -1.08%
Nvidia Corp. (NVDA) $22.67 -0.92%
Linear Technology Corp. (LLTC) $46.81 -0.62%
Vimpelcom Ltd Ads (VIP) $5.37 -0.56%