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Banking industry

U.S. Stocks Rebound as Home Sales Surge and Banking Concerns Ease

Strategic Insights

— 2 min read

U.S. stocks posted significant gains on the back of better-than-expected home sales and stabilizing loan demand at Bank of America Corp. The Standard & Poor's 500 Index climbed 2.6% to 1,098.47, with oilfield-services companies leading the charge after their shares slumped yesterday. The rebound was also fueled by pending sales of existing homes rising to their highest level since October, as buyers took advantage of a tax credit. Economists and analysts are now optimistic about the economic outlook, citing improving fundamentals despite ongoing banking concerns in Europe.

Key Takeaways:

  • The Standard & Poor's 500 Index rose 2.6% to 1,098.47 on better-than-expected home sales and stabilizing loan demand at Bank of America Corp.
  • Oilfield-services companies, including Halliburton Co. and Schlumberger Ltd., led gains after their shares slumped yesterday, rising at least 8.8% after being named short-term buys by Morgan Stanley.
  • Pending sales of existing homes rose to their highest level since October, with buyers taking advantage of a tax credit.
  • The MSCI World Index of stocks in 24 developed nations rose 1.1%, erasing an earlier 0.9% drop.
  • Ten-year Treasury yields rose 8 basis points to 3.34%, while the yen slid versus 15 major currencies.
  • The S&P 500 erased yesterday's 1.7% slump, with the index's energy shares rallying 4.3% for the top advance among 10 industries.
  • Hank Smith, chief investment officer of Haverford Trust Co., noted that the fundamentals are improving, despite ongoing banking concerns in Europe.

Statistics:

  • 2.6% - The Standard & Poor's 500 Index rose on better-than-expected home sales and stabilizing loan demand at Bank of America Corp.
  • 1,098.47 - The Standard & Poor's 500 Index closed at on June 10, 2010.
  • 8.8% - The minimum percentage gain by Halliburton Co. and Schlumberger Ltd.
  • 1.1% - The MSCI World Index of stocks in 24 developed nations rose, erasing an earlier 0.9% drop.
  • 3.34% - The ten-year Treasury yields rose 8 basis points to on June 10, 2010.
  • 15 - The number of major currencies against which the yen slid.
  • 1.7% - The S&P 500's decline yesterday, erased by the day's rebound.
  • 4.3% - The top advance among 10 industries, led by the S&P 500's energy shares.
  • $6 billion - The amount Hank Smith oversees as chief investment officer of Haverford Trust Co.

Sources:

  • Euclid Infotech Pvt. Ltd.
  • Syndigate.info
  • Albawaba.com

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