NEW YORK, July 14 (Reuters) – Two
major U.S. stock indexes set fresh
intraday record highs on Thursday on
investors’ rosy outlook for big banks’
second-quarter earnings, while European
shares also rose and oil prices rebounded
from the previous session’s bruising
Expectations of more central bank
stimulus has contributed to stocks’ gains
in the past week. The view that the U.S.
economy is on solid footing, as well as
reduced political uncertainty in Britain
and Japan, have also buoyed stocks.
The benchmark S&P 500 hit 2,168.99, its
fourth straight intraday record peak, while
the Dow Jones industrial average hit
18,537.57 to mark its third straight
intraday record high.
JPMorgan, the biggest U.S. bank by
assets, reported a quarterly revenue rise
that beat estimates by a large margin,
sending its shares up 2.4 percent and
boosting the S&P financial index 1
The pan-European STOXX Europe 600
and the FTSEurofirst 300 index of top
regional shares both reached their highest
levels since Britain voted on June 23 to
exit the European Union, with bank shares
rallying, but trimmed gains after the Bank
of England caught investors off guard by
keeping interest rates unchanged.
Thursday’s gains in U.S. and European
shares helped push MSCI’s all-country
world equity index to an eight-month high
of 412.47. The S&P 500 hit record
closing highs over the past three days,
while the Dow has ended at record highs
over the past two sessions.
Safe-haven assets such as U.S.
Treasuries, gold, and the Japanese yen
fell in value on the greater risk appetite
“The fact that is giving everyone hope is
that JPMorgan’s revenues were strong
and that shows business is being done,”
said Kim Forrest, senior equity research
analyst at Fort Pitt Capital Group in
The MSCI world equity index was last up
0.67 percent, at 412.03.
The Dow Jones industrial average was
last up 148.33 points, or 0.81 percent, at
18,520.45. The S&P 500 was up 13.83
points, or 0.64 percent, at 2,166.26. The
Nasdaq Composite was up 34.28 points,
or 0.68 percent, at 5,040.00.
Europe’s broad FTSEurofirst 300 index
was last up 0.95 percent, at 1,338.9.
Oil prices rallied more than 2 percent as
short covering lifted prices which were
hammered on Wednesday by unusually
weak U.S. demand for motor fuel.
Brent crude was last up 2.49 percent, at $
47.41 a barrel. U.S. crude was last up
2.3 percent, at $45.76.
“It’s always the case a day after a big
rally or sell-off for people to feel it was
overdone,” said Phil Flynn, an analyst
with Chicago brokers Price Futures
The dollar hit a nearly three-week high
against the yen of 105.93 yen on the
greater risk appetite, while sterling hit a
two-week high of $1.3480 after the BoE
Benchmark 10-year U.S. Treasury yields
hit a nearly three-week high of 1.551
percent, partly on U.S. data showing
rising inflation. Bond yields move
inversely to prices.
Spot gold prices were last down 0.92
percent at $1,330.10 an ounce.