Wall St. rallies, led by financials, energy stocks and Amazon

Tue May 10, 2016 11:26am EDT
 
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By Tanya Agrawal

(Reuters) - U.S. stock rose strongly in late morning trading on Tuesday, helped by a rally in financial shares and with commodity prices boosting energy and industrial stocks.

Amazon (AMZN.O: Quote) jumped as much as 3.2 percent to a record high of $701.40, providing the biggest boost on the S&P and the Nasdaq, after Bernstein set a $1,000 price target on the stock.

All 10 major S&P sectors were higher, led by a 1.35 percent rise in the energy index .SPNY. Oil was up over 3 percent as supply disruptions in Canada and elsewhere overshadowed fears of oversupply. [O/R]

World stock markets had also risen, helped by solid corporate earnings in Europe, progress on Greek debt talks, and a new pledge by Japan that it was prepared to weaken the yen.

"Comments from Japan regarding an intervention in the yen and a stabilization in oil prices are helping equities today," said Dan Farley, regional investment strategist at U.S. Bank Wealth Management in Minneapolis.

"We're also at the end of the earnings season and while we aren't expecting a massive improvement in profit, I do expect to see some revenue growth in the second quarter."

At 11:00 a.m. ET (1500 GMT) the Dow Jones industrial average .DJI was up 173.37 points, or 0.98 percent, at 17,879.28, the S&P 500 .SPX was up 18.39 points, or 0.89 percent, at 2,077.08 and the Nasdaq Composite .IXIC was up 32.58 points, or 0.69 percent, at 4,782.78.

The S&P 500, which has risen about 15 percent since its February lows, has seen its rally slow in the last two weeks due to underwhelming quarterly earnings and mixed U.S. economic data.   Continued...

 
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 9, 2016. REUTERS/Brendan McDermid/File Photo