US STOCKS-Wall St rises more than 1 pct as bank, tech stocks jump

  • Reuters
  • Stock Market News
US STOCKS-Wall St rises more than 1 pct as bank, tech stocks jump
Credit: © Reuters.

* Twitter touches record low after brokerage downgrade
* Toll Brothers up on revenue beat
* New U.S. home sales touch 8-year high in April
* Indexes up: Dow 1.20 pct, S&P 1.27 pct, Nasdaq 1.66 pct

(Adds details, changes comment, updates prices)
By Tanya Agrawal
May 24 (Reuters) - U.S. stocks rose to their highest in the
last seven sessions on Tuesday, helped by gains in technology
and financial stocks.
The S&P financial sector .SPSY got a big boost from a rise
in banking stocks as investors speculated on the possibility of
a June interest rate hike.
Bank of America (NYSE: BAC ) BAC.N , JPMorgan (NYSE: JPM ) JPM.N and Citigroup (NYSE: C )
C.N were all up more than 1.5 percent each.
Minutes of the Federal Reserve's April meeting suggested a
June rate hike had not been ruled out, surprising investors who
had thought the Fed would stand pat until the end of the year.
"I think investors are becoming more comfortable with an
early rate hike because even if the Fed does raise rates in
June, it will remain extremely accommodative," said Art Hogan,
chief market strategist at Wunderlich Securities in New York.
"I think the Fed wants to recalibrate the market's
expectations regarding a hike."
Several Fed officials struck hawkish tones in separate
speeches on Monday, calling for two-three rate hikes in 2016 if
supported by economic data.
Fed Chair Janet Yellen speaks on Friday.
Traders are now pricing in a 39 percent chance of a June
hike, up from 4 percent last week, as inflation creeps towards
the Fed's 2 percent target rate and the labor market
strengthens.
Data on Tuesday showed new U.S. single-family home sales
surged to a more than eight-year high in April and prices hit a
record high, offering further evidence of a pick-up in economic
growth.
The Philadelphia Housing Index .HGX climbed to a one-month
high after the data.
At 11:07 a.m. ET (1507 GMT) the Dow Jones industrial average
.DJI was up 209.97 points, or 1.2 percent, at 17,702.9, the
S&P 500 .SPX was up 26.04 points, or 1.27 percent, at 2,074.08
and the Nasdaq Composite .IXIC was up 79.28 points, or 1.66
percent, at 4,845.06.
The S&P rose above its 50-day moving average for the first
time in four days. The index has not closed above the closely
watched metric in almost two weeks.
The gains were broad-based, with all 10 S&P sectors in the
black. The technology index's .SPLRCT 1.65 percent rise led
the advance.
Oil reversed early losses to turn positive, as investors
awaited crude oil inventory data from the United States that was
expected to show a shrinking supply overhang. O/R
Toll Brothers TOL.N shares were up 5.4 percent at $28.55
as the company's quarterly revenue beat expectations.

Twitter TWTR.N fell as much as 4.8 percent to a record low
at $13.72 after brokerage MoffetNathanson downgraded the
company's stock to "sell" from "neutral".
Advancing issues outnumbered decliners on the NYSE by 2,351
to 549. On the Nasdaq, 2,090 issues rose and 515 fell.
The S&P 500 index showed 25 new 52-week highs and one new
low, while the Nasdaq recorded 66 new highs and 18 new lows.

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