Wall Street stocks end higher as regional bank shares rally

NEW YORK: Wall Street stocks were higher at the end of a choppy session on Tuesday (June 6) as beaten-down regional banking shares advanced on a quiet day for markets.

Investor sentiment has broadly improved with US lawmakers agreeing on a compromise fiscal package to avert a debt default and financial shares stabilising following the failure of four regional banks earlier in the year.

Shares of KeyCorp, Fifth Third Bancorp and Comerica all rose about 5% or more on Tuesday.

“It looks like investors are gaining a little optimism,” said Cresset Capital CIO Jack Ablin.

“The narrowness in the market where everyone was focused on the top seven names or so is starting to dissipate a little bit and that’s good news.”

The Dow Jones Industrial Average rose 10.42 points, or 0.03%, to 33,573.28, the S&P 500 gained 10.06 points, or 0.24%, to 4,283.85 and the Nasdaq Composite added 46.99 points, or 0.36%, to 13,276.42.

“Wall Street’s summer doldrums started early this year,” said a note from Charles Schwab. “It’s only the beginning of June, but it feels like the market is already on summer vacation after all the excitement of recent weeks.”

Among individual companies, Boeing dipped 0.7% as it disclosed that near-term deliveries of the Boeing 787 would be slowed due to an issue with a supplier part.

The aviation giant does not expect the problem to affect its full-year delivery projections.

Pharmaceutical giant Merck dropped 2.7% as it filed a suit against the government Medicare programme, challenging a new plan to limit prices.

Coinbase Global plunged 12.09% after the US Securities and Exchange Commission sued the crypto exchange, accusing it of illegally operating without having first registered with the regulator. – AFP, Reuters

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