U.S. stocks rose on Thursday, led by financials, after RBC Capital Markets said it sees banks outperforming the market for multiple years, and energy stocks gained as oil rose almost 5 percent.
The KBW bank index <.BKX> added 3.2 percent, while the S&P financial index <.GSPF> rose 2.5 percent after RBC upgraded the banking sector to overweight from sector weight, saying the sector is poised for a multi-year bull market.
Separately, JPMorgan Chase
The market is being led today by some gains in financial stocks as well as energy and basic materials names as a result of the rise in commodity prices, said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.
The move in financial stocks today is really a mix of names with no strong theme.
The S&P energy index <.GSPE> was up 2.2 percent, as crude oil futures rose $3.26 to $69.37 a barrel, rebounding from Wednesday's slide. Resource shares and industrial names also powered the Dow industrials higher
The Dow Jones industrial average <.DJI> gained 64.90 points, or 0.75 percent, to 8,740.18. The Standard & Poor's 500 Index <.SPX> rose 9.24 points, or 0.99 percent, to 941.00. The Nasdaq Composite Index <.IXIC> added 19.64 points, or 1.08 percent, to 1,845.56.
Plane maker Boeing
Thursday's reports were generally positive for the market.
Economic reports showed U.S. non-farm productivity rose by 1.6 percent in the first quarter, much stronger than initially estimated, while the number of workers filing new claims for jobless benefits fell last week.
Investors, however, were keenly awaiting Friday's report on U.S. employment, considered a key economic indicator.
People want to see more than one data point, they want to see a trend develop, Alexander said. A lot of good news is factored into this market.
On the Nasdaq, Apple Inc
Costco Wholesale Corp
Since reaching a 12-year low in early March, the Dow has gained 33 percent and the S&P has risen 38 percent.
(Editing by Leslie Adler)