The major domestic equity indexes snapped back once again from a losing streak on Friday with technology stocks leading the pack after a week of blistering losses. Driving the upbeat trading day were investors looking for bargains ahead of the upcoming earnings season. At the same time, there was no letup on concerns over U.S.-China trade tensions.
Even the hard-hit S&P500 energy and financial sectors managed to close the session with slight gains after a late afternoon rally.
The S&P technology index gained 3.2 percent on the day, showing its strongest one-day gain since March 26, although it still registered its largest weekly drop since March 23.
The technology sector’s best performers were Apple, and Microsoft which rose more than 3.0 percent. Visa and Mastercard were both higher by almost 5.0 percent, aided by strong credit card sales included in bank earnings reports.
The S&P 500’s financial sector ended the day up 0.1 percent and the S&P 500 banks subsector closed down 0.4 percent, well above its session low. The worst drag on the subsector was JPMorgan Chase, which closed 1.0 percent lower despite reporting a quarterly profit that exceeded expectations.
PNC Financial led the percentage losers among bank stocks, with a 5.6 percent drop after the regional bank reported disappointing quarterly loan growth and said it expected only a small improvement in lending this quarter.
The three gainers among banks included Citigroup, which rose 2.0 percent, and Wells Fargo, which eked out a 1.3 percent gain after upbeat results.
Netflix and Amazon, some of the names that took a big hits in the week’s selloff, rose 5.7 percent and 4.0 percent respectively.
The bank results launch a quarterly reporting season that will give the clearest picture yet of the impact on profits from President Donald Trump’s trade war with China.
Earnings at S&P 500 companies are estimated to have risen 21.5 percent in the third quarter, according to I/B/E/S data, a slowdown from the previous two quarters.
Energy stocks ended the day up 0.3 percent as oil prices steadied to settle up slightly after a volatile session dropped on a weakening oil demand outlook.
The consumer discretionary and communication services sectors, both rose more than 2.0 percent.
Approximately 8.91 billion shares changed hands on the major domestic equity exchanges, a number that was well above the 7.78 billion share average for the last 20 trading days but below the soaring volume of Thursday’s and Wednesday’s sessions.