U.S. stocks, bond yields rise after Comey statement; oil plunges
By Hilary Russ
NEW YORK (Reuters) - U.S. stocks closed higher and Treasury yields rose on Wednesday after the release of written testimony from ex-FBI chief James Comey, with investors looking ahead to his U.S. Senate appearance on Thursday, the same day as a British parliamentary vote and a European Central Bank meeting.
A smoothly executed rescue of Spain's Banco Popular lifted bank stocks in Europe, while oil prices suffered a steep slide after the U.S. government reported an unexpected increase in crude and gasoline inventories. [nL3N1J415K]
U.S. crude CLcv1 fell 5.08 percent to $45.74 per barrel and Brent LCOcv1 was last at $48.12, down 3.99 percent on the day.
The Dow Jones Industrial Average .DJI rose 37.46 points, or 0.18 percent, to end at 21,173.69, the S&P 500 .SPX gained 3.81 points, or 0.16 percent, to 2,433.14 and the Nasdaq Composite .IXIC added 22.32 points, or 0.36 percent, to 6,297.38.
In a written statement posted on the web on Wednesday, Comey, the former FBI chief fired by President Donald Trump, said Trump asked him to back off from a probe into former national security advisor Michael Flynn and told Comey, "I need loyalty. I expect loyalty."
Comey is to testify before Senators on Thursday.
Treasury prices slid after his comments were released, sending benchmark 30-, 10- and 2-year yields US30YT=RR US10YT=RR US2YT=RR to session highs.
"The market was pricing in a much worse news flow from the Comey testimony than what we saw," said Bruno Braizinha, interest rates strategist at TD Securities in New York. Continued...