October 15, 2015 / 8:53 PM / 2 years ago

GLOBAL MARKETS-U.S. stocks up on earnings; data lifts dollar, bond yields

* U.S. stocks rebound after two days of declines
    * Financial sector 2 pct rise drives S&P 500 gain
    * Dollar rises, bond yields up after low jobless numbers
    * Oil settles down amid lingering global glut concerns

 (Updates with U.S. market close, comments)
    By Sinead Carew
    NEW YORK, Oct 15 (Reuters) - U.S. stocks rebounded from two
days of losses to close higher on Thursday, helped by financial
sector earnings, while stronger-than-expected economic data
boosted the dollar and bond yields.    
    The dollar was up 0.5 percent after a three-day slide
against a basket of currencies, on track for its biggest gain
since Sept. 30. after a rise in September core U.S. consumer
prices. The data also pushed up U.S. Treasuries
yields slightly, as it renewed some hopes for a 2015 Federal
Reserve interest rate hike. 
    In addition, the number of Americans filing new applications
for unemployment benefits fell back to a 42-year low last week,
suggesting the labor market remained strong despite an abrupt
slowdown in job growth in the past two months. 
    "It's a stronger economy day. Unemployment claims were very
good at the lowest in 42 years, suggesting the labor market is
OK," said Daisuke J. Nakajima, managing director and economist
at Evercore ISI Group in New York.
    U.S. stocks were helped by strength in some third-quarter
earnings reports, led by the benchmark S&P 500's financial
sector, which closed up 2.3 percent for its best day in
more than a month. Citigroup was a big driver with a 4.4
percent rise after it beat estimates.
    Of the companies that reported earnings so far this season,
67 percent have exceeded analyst estimates, compared with 49
percent in a typical quarter, according to Thomson Reuters
data.  
    But Jim Paulsen, chief investment officer at Wells Capital
Management in Minneapolis, said the stocks boost was just a
rebound, as none of the fundamentals "have been decisive enough
to take you away from the technical battle that's going on."
    The Dow Jones industrial average rose 217 points, or
1.28 percent, to 17,141.75, the S&P 500 gained 29.62
points, or 1.49 percent, to 2,023.86 and the Nasdaq Composite
 added 87.25 points, or 1.82 percent, to 4,870.10.
    "There's a lot of cash on sidelines, and we did break
through to a new high since the August decline," said Tim
Ghriskey, chief investment officer of Solaris Group in Bedford
Hills, New York.
    Oil prices settled down for the fourth straight day as the
U.S. government reported a larger-than-expected crude stockpile
build. However, after settling down 0.6 percent at $46.38,
though above its session lows, U.S. crude rose 0.3 percent in
late trade, helped by the equities rally. 
    "We were trading according to supply-demand fundamentals
earlier in the day. But toward the close, it was the risk-on,
macro trade, with money flowing into riskier assets such as
stocks and commodities," said Chris Jarvis, analyst at Caprock
Risk Management in Frederick, Maryland. 
    Brent oil futures settled down 0.9 percent at $48.11
a barrel. Other commodities were mixed, with gold 
down 0.2 percent while copper was up 0.2 percent.   
    MSCI's emerging share index was up 1.8 percent
after a two-day fall and hit its highest level since Aug. 13.
    "People's fears of a global slowdown are maybe bottoming
out," Paulsen said.

 (Additional reporting by Barani Krishnan, Caroline
Valetkevitch, Sam Forgione and Richard Leong in New York;
Editing by Nick Zieminski, Meredith Mazzilli and Dan Grebler)

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