United States stocks gain for 5th straight day, Dow +1.2%

Fredrick Soto
February 16, 2018

On Monday, Wall Street's main indexes rose for a second straight session, recovering from a vicious sell-off that slashed $6 trillion in value from stock markets around the world.

The market started slightly lower Wednesday but turned higher within the first hour of trading and kept going.

Shares of Under Armour rose more than 15 percent after the sportswear maker reported quarterly revenue that beat analysts' estimates.

Other gainers in the technology industry included Cisco Systems, which rose $1.07, or 2.7 percent, to $40.60.

Apple and Cisco were among the big winners in tech, while industrial companies including Boeing also rose.

The Consumer Price Index, which measures how quickly prices are going up in the US economy, rose at a faster than anticipated 2.1 percent in January compared to a year ago.

In premarket trading, Dow component's Cisco climbed nearly 8 percent after the company posted upbeat results as well as a forecast. The Nasdaq composite climbed 130.10 points, or 1.9 percent, to 7,143.62. "The year-over-year rate on the core is still below 2 percent". South Korea's KOSPI gained 1.1 percent, while Japan's Nikkei upped 1.5 percent after three consecutive days of losses that put it to a four-month low the previous day.

Banks were benefiting Wednesday from a rise in bond yields, which allows them to charge higher interest rates on loans.

The big four banks fell between half a percent and 0.8 percent as a government-backed probe into the financial services sector got underway.

Bond yields rose after the government said consumer prices climbed in January at a rate that was faster than economists had expected. Silver rose 35 cents, or 2.1 percent, to $16.88 an ounce.

I would've expected the revelation that a consumer price index rise of 0.5% in January, when economists in a Reuters survey expected a 0.3% lift, might have reignited some market panic of the kind we saw a week ago.

The Dow Jones Industrial Average rose 306.88 points (1.23 per cent) to end the day at 25,200.37. The Nasdaq climbed 53 points, or 0.7 per cent, to 7,196.

Investors were looking at the number closely because a sharp increase in wages last month, another key measure of inflation, helped set off this month's market plunge.

Rail freight operator Aurizon Holdings rallied 2 percent as it reported a 52 percent increase in half-year profits.

Energy companies were the lone laggard among the 11 sectors in the Standard & Poor's 500 index.

Oil prices have dropped since reaching long-time highs in late January, when US crude peaked at $66 a barrel.

Futures for the Dow Jones industrials were indicating a drop of 177 points at the open.

Traders largely shrugged off a report from the Commerce Department showing wholesale inventories increased by more than expected in the month of December. Recent swings in financial markets were touched off by worries that rising inflation could prompt the Federal Reserve to accelerate increases in interest rates.

The Labor Department will release the Consumer Price Index for January at 8:30 a.m. EST (1330 GMT) on Wednesday.

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