Stocks rose sharply for a second session Wednesday as oil prices neared $50 a barrel, bolstering sentiment that the economy is strong enough to withstand higher interest rates.
The Dow Jones industrial average rose 0.8%, while the S&P 500 and Nasdaq each climbed 0.7%. Volume was mixed, slipping on the Nasdaq while rising modestly on the NYSE, according to preliminary data.
Oil, retail and bank stocks were among the best performers in the stock market today, while defensive utility names were among the biggest decliners.
Western Alliance Bancorp (WAL) jumped nearly 3%, clearing a 37.58 buy point of a cup-with-handle base in heavy volume. The Phoenix-based regional lender has posted three straight quarters of accelerating profit growth. Revenue growth has been strong over the past three quarters.
Big banks also fared well, as higher interest rates tend to boost profits. Goldman Sachs (GS) led the Dow with a 2.3% gain, while JPMorgan Chase (JPM) added 1.5%.
Oil driller Transocean (RIG), up 10%, was the best performer in the S&P 500 as oil prices jumped 2% to just below $50 a barrel on a drop in inventories. Oil explorers Chesapeake Energy (CHK) and Southwestern Energy (SWN) each rose about 7%.
Most IBD 50 stocks rose. Dycom (DY) rocketed more than 13%, breaking out past a 73.28 buy point of a cup-with-handle base, after the telecom infrastructure company reported better-than-expected quarterly results.