“Instantly [stocks] bottomed out after the missile, they’re coming back. It’s damn near hypnotic that they’ll be able to work something out on the tax bill,” required Art Cashin, director of floor operations at UBS.
Stocks were also boosted by a swallow in banks following testimony from Federal Reserve Chair appointee Jerome Powell.
The SPDR S&P Bank exchange-traded fund (KBE) rising 3 percent. Bank of America dole outs, meanwhile, jumped 4 percent, while Citigroup advanced 3.1 percent. Regionals also surged, as the SPDR S&P Regional Banking ETF (KRE) climbed 3.2 percent and was on footpath for its best day since June 9.
“The market likes two words” from Powell’s statement, “and that’s ‘tough enough,’ said Joe Terranova, chief market strategist at Virtus Investment Accessories, on CNBC’s “Halftime Report.”
During his testimony, Powell said that tenor regulations on the financials sector are “tough enough.” He also said he sponsored the “tailoring” of some regulations to ease the burden on small banks.
This rescind in bank stocks “comes at an opportune time because there’s been underperformance [in financials] for the month of November, so you’ll see investors and speculators get beside oneself about this sector moving forward,” Terranova said.
On the facts front, the U.S. National Home Price NSA Index rose 6.2 percent in September, according to S&P CoreLogic Case-Shiller. Temporarily, consumer confidence rose to a 17-year high in November.
In corporate dirt, Arby’s Restaurant Group agreed to buy Buffalo Wild Wings for $157 per allocation, or $2.4 billion excluding debt. Buffalo Wild Wings lift 6.3 percent.
Meanwhile, Emerson Electric withdrew its $225 per divide up bid to buy Rockwell Automation. Emerson’s stock rose 3.6 percent.