U.S. stocks advanced,
with the Standard & Poor’s 500 Index extending a four-month high, as
investors assessed earnings releases and data showing the labor market
is improving with little pickup in inflation.
Banks wiped out
earlier losses and rallied, with Bank of America Corp. climbing after
saying it sees more room for cost cuts. Airline operators jumped along
with Delta Air Lines Inc., which posted quarterly earnings that beat
projections. Seagate Technology Plc tumbled 19 percent after reporting
preliminary revenue that trailed estimates.
The S&P 500 added
0.2 percent to 2,085.74 at 12:16 p.m. in New York, after reaching the
highest level since Dec. 4. Financial shares and commodity producers
have led the benchmark gauge to a 1.9 percent advance so far this week,
after the measure faltered last week amid skepticism central banks’
efforts to shore up growth will fail to be effective. The Dow Jones
Industrial Average increased by 37 points to 17,945.3 on Thursday.
While the rally that
lifted the S&P 500 since February is regaining momentum, skepticism
still prevails, with valuations far above their five-year average and
the seven-year bull market weeks away from becoming the second-longest
in history. Some investors also attribute the rebound to short squeezes,
with a Goldman Sachs Group Inc. gauge of the 50 most-shorted stocks
posting its biggest two-day jump in almost two months.
Source: Bloomberg
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