U.S. stocks rose in volatile trade on Thursday as better-than-expected results from several regional banks lifted financial shares, overshadowing disappointing economic data and anemic outlooks from economic bellwethers like United Parcel Service.
Earnings from big U.S. regional banks, including PNC Financial Services Group Inc
But investors wrestled with the possibility that the federal government's stress tests on 19 major U.S. banks may reveal weaknesses, which created volatility throughout the session. The government is set to unveil the results on May 4.
It's still about the banks. We're all still wondering about the stress tests, said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago.
Solid results from companies such as Apple Inc
The Dow Jones industrial average <.DJI> gained 70.49 points, or 0.89 percent, to 7,957.06. The Standard & Poor's 500 Index <.SPX> rose 8.37 points, or 0.99 percent, to 851.92. The Nasdaq Composite Index <.IXIC> added 6.09 points, or 0.37 percent, to 1,652.21.
In contrast, United Parcel Service Inc
U.S. government data showed existing homes sales fell in March to a much lower-than-expected annual rate, while weekly initial jobless claims rose slightly more than expected.
Barring a surprising advance on Friday, Wall Street stocks were on track to snap a six-week streak of gains.
Energy shares also gained as the price of crude rose 1.6
percent, lifting Chevron Corp
The broader S&P 500 is up nearly 26 percent from its bear-market closing low on March 9. While some profit-taking was not unexpected after the impressive rally, analysts said declines could be countered by investors who missed the rally and who are looking to get back into the market.
Shares of PNC Financial rose 7.5 percent to $40.93 on the New York Stock Exchange, while Fifth Third's stock gained 3.5 percent to $3.82 on the Nasdaq. The Holders Regional Bank Sector ETF
Internet auction and marketplace giant eBay Inc
Trading was moderate on the New York Stock Exchange, with about 1.57 billion shares changing hands, slightly above last year's estimated daily average of 1.49 billion, while on Nasdaq, about 2.46 billion shares traded, above last year's daily average of 2.28 billion.
Advancing stocks outnumbered declining ones on the NYSE by a ratio of about 3 to 2, while the trend was the reverse on the Nasdaq, where about eight stocks fell for every five that rose.
(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)