Wall Street ends day higher
NEW YORK – Stocks closed broadly higher on Wall Street Wednesday, ending a three-day losing streak as an upbeat report from Delta Air Lines sparked a rally for companies in the travel industry.
Investors brushed off yet another report showing that inflation remains widespread in the U.S. economy, and the broad gains helped trim weekly losses for most of the major indexes. The stock and bond markets face a shortened week and will be closed on Friday for the Good Friday holiday.
The S&P 500 index rose 49.14 points, or 1.1%, to 4,446.59. The benchmark index is coming off three straight losses brought on by persistent worries about inflation and the tough medicine the Federal Reserve is planning to use against it, higher interest rates.
The Dow Jones Industrial Average rose 344.23 points, or 1%, to 34,564.59 and the Nasdaq rose 272.02 points, or 2%, to 13,643.59.
Smaller company stocks outpaced the broader market in a sign that investors were confident about economic growth. The Russell 2000 index rose 38.17 points, or 1.9%, to 2,025.10 and is on track for a weekly gain.
Travel-related companies were among the biggest gainers after Delta reported strong revenue during its first quarter and solid bookings.
Delta rose 6.2% and rival American Airlines jumped 10.6%. Rivals Southwest and United Airlines also gained ground. Cruise line operators Carnival and Royal Caribbean had solid gains, along with Expedia Group.
Technology stocks did a lot of heavy lifting. Pricey valuations for many of the bigger technology companies lend more weight to directing the broader market higher or lower.
Banks slipped following a disappointing earnings report from JPMorgan, which fell 3.2% after revealing a sharp drop in profits as it wrote down nearly $1.5 billion in assets due to higher inflation and the Russian-Ukrainian War.
Bond yields fell. The yield on the 10-year Treasury fell to 2.69% from 2.72%.
The Labor Department reported that the surging cost of energy pushed wholesale prices up a record 11.2% last month from a year earlier – another sign that inflationary pressure is widespread in the U.S. economy. That report comes a day after the department reported that consumer prices remain at their highest levels in generations.
“In the near term there’s a lot of focus on what the inflection point looks like and there’s confidence now that we’re seeing a peak,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.
Investors will get more details on how companies and consumers are dealing with pressure from inflation in the coming days and weeks as more companies report their latest financial results. The Commerce Department on Thursday will release its retail sales report for March, which will show whether and where consumers are pulling back on spending.
Energy report
Benchmark U.S. crude oil for May delivery rose $3.65 to $104.25 a barrel Wednesday. Brent crude for June delivery rose $4.14 to $108.78 a barrel.
Wholesale gasoline for May delivery, up 14 cents to $3.29 a gallon; heating oil, up 26 cents to $3.72 a gallon; natural gas, up 32 cents to $7 per 1,000 cu. ft.