U.S. stocks extended their rebound Wednesday as they followed European bourses higher. Nike and American Express boosted the Dow with big gains, while banks rose ahead of the Fed's stress test results.
The Nasdaq rallied 1.9%, the S&P 500 jumped 1.7% and the Dow Jones industrial average added 1.6%, as the major indexes closed near session highs. The Dow and S&P 500 are close to regaining their 50-day lines. Volume was mixed, lower on the NYSE but higher on the Nasdaq, according to preliminary numbers.
Oil stocks again led the upside amid a drop in the Energy Information Administration's weekly U.S. stockpiles report. West Texas intermediate crude surged 3% to $49.32 a barrel.
Automakers and shoe and apparel makers also outperformed in the stock market today. Tesla (TSLA) cruised 4% higher in fast trade for a third straight advance. The stock is 5% and 4% below its respective 50-day and 200-day moving average lines. The electric car maker made headlines June 21 after making a surprise bid for solar installer SolarCity (SCTY) in a stock swap valued at about $2.7 billion. Tesla CEO Elon Musk is chairman of SolarCity.
Nike (NKE) sprinted 4% in speedy turnover. Shares fell Tuesday in extended trading after the athletic footwear and apparel maker reported fiscal Q4 sales that missed views. Analysts overall remain bullish on Nike's long-term outlook -- a few analysts trimmed their price targets but maintained a buy rating.
Nike and American Express (AXP), which continues its recovery from steep post-Brexit drops, were the top gainers on the Dow. AmEx rose 3.5%. Goldman Sachs (GS) and JPMorgan (JPM) were up more than 2% each ahead of the second round of stress test results, which were announced after the close.
The Fed OK'd capital plans for Goldman, JPMorgan, Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC). But it gave only conditional approval to Morgan Stanley (MS), which will need to resubmit.
The U.S. units of Deutsche Bank (DB) and Banco Santander (SAN) failed stress tests. All 33 banks tested passed the first round of the evaluation last week.
Citigroup, which gained 4% in regular trading, was up more than 2% after hours.
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Consumer prices climbed 0.2% in May, a percentage point below April's increase and in line with forecasts. The National Association of Realtors' pending home sales index fell 3.7% in May to 110.8 amid tight supply and rising prices. Economists expected a 2% dip.
Key economic data due out Thursday include weekly jobless claims and the Institute for Supply Management's Chicago purchasing managers index for June. St. Louis Fed chief James Bullard is also scheduled to speak.
