Wall Street climbs as some beaten-down bank stocks recover
Stocks ended broadly higher on Wall Street Tuesday, as some of the most breathtaking moves from a manic Monday reversed course. The second- and third-largest bank failures in U.S. history have both come since Friday.
The S&P 500 rose 1.7% after a report showed inflation is still high but heading lower. Stocks of smaller and mid-sized banks recovered some of their prior plunges caused by worries that customers could yank out all their cash. Treasury yields soared to trim their historic drops.
The Dow Jones Industrial Average rose 1.1%, while the Nasdaq composite added 2.1%. Gains in technology stocks, banks and communications services companies powered much of the rally.
Stocks across the financial industry rose Tuesday, recovering some of their steep earlier drops. First Republic Bank jumped 27% after plunging 67.5% over the prior three days. KeyCorp gained 6.9%, Zions Bancorp. rose 4.5%, and Charles Schwab climbed 9.2%.
All told, the S&P 500 rose 64.80 points to 3,920.56, ending a three-day losing streak. The Dow added 336.26 points to 32,155.40, and the Nasdaq gained 239.31 points to 11,428.15. The Russell 2000 index of smaller companies rose 32.59 points, or 1.9%, to 1,776.89.
Tyson to close poultry facilities in Virginia, Arkansas
Tyson Foods is closing two facilities that employ more than 1,600 people in an effort to streamline its U.S. poultry business.
The company said Tuesday it plans to close its processing, broiler and hatching operations in Glen Allen, Virginia, and a plant in Van Buren, Arkansas. Both closures are scheduled for May 12.
Tyson said the closures will help it better use all available capacity at remaining plants.
The Springdale, Arkansas-based company said it will work with its 692 employees in Glen Allen and its 969 employees in Van Buren to help them apply for open positions at other plants.
United sees Q1 loss on cost of potential contract for pilots
United Airlines said Monday it will lose up to $1 a share in the first quarter after accounting for some of the cost of a potential new contract with pilots.
Wall Street was expecting United to post a first-quarter profit on the back of strong travel demand.
United is still negotiating with its pilots, who are eager to match a recently ratified contract that will give Delta pilots cumulative raises averaging 34% over four years. United said in a regulatory filing that it will book the expense for a new agreement in the first quarter instead of the second quarter.
The airline now expects to lose between 60 cents and $1 per share. Analysts surveyed by FactSet had been predicting a profit of 60 cents per share. United forecast earnings of 50 cents to $1 per share in January.