(Reuters) – US stocks rallied on Friday after Nike rose sharply on the strength of the US Federal Reserve's strong earnings report and rising stress test.
Nike shares rose 1
The S & P financials sector, which broke a 13-day losing streak Thursday, rose 0.88 percent after US lenders approved the second part of the Federal Reserve's annual stress test.
Wells Fargo led gains by 4.6 percent, while Citigroup gained 1.3 percent, Bank of America 0.5 percent and JPMorgan 0.5 percent.
The profits of Goldman Sachs and Morgan Stanley were lower as they passed the test with conditions.
The Department of Commerce's financial data, which showed that May's private consumption target reached the US Federal Reserve's target of 2 percent for the first time in six years, also contributed to the appreciation.
After a slight wobble over a report that President Donald Trump said he wanted to move the US out of the World Trade Organization, markets regained ground after Treasury Secretary Steven Mnuchin told Fox Business Network that the Axios report was wrong.
"Markets are very much buzzing about trade and customs," said Peter Cecchini, chief market strategist at Cantor Fitzgerald, New York.
"It is important from the point of view that globalization of trade has been the cornerstone of growth, and if you do something to undermine that cornerstone, it is a reasonable cause for concern."
At 9:51 am EDT the Dow Jones Industrial Average rose 215.59 points or 0.89 percent to 24,431.64, the S & P 500 rose 17.58 points or 0.65 percent to 2,733.89 and the Nasdaq Composite rose 48.01 points or 0.64 percent to 7,551.70.
Seven of the 11 major S & P sectors were higher, with the energy index rising 1.55 percent as oil prices rose, while the consumer discretionary sector, boosted by Nike, rose more than 1 percent ,
Constellation Brands lost 6.9 percent after the corona beer maker reported an unexpectedly low quarterly profit and retained its full-year earnings guidance on missed estimates.
KB Homes rose 6.9 percent after second-quarter residential construction outperformed Wall Street estimates.
Progressive issues outweighed the declines at a 2.66 to 1 ratio on the NYSE and a 2.17 to 1 ratio on the Nasdaq.
The S & P index posted four new 52-week highs and no new lows, while the Nasdaq recorded 20 new highs and 20 new lows.
Reporting by Amy Caren Daniel in Bengaluru; Arrangement of Shounak Dasgupta