October 15, 2015 / 8:48 PM / 2 years ago

US STOCKS-Wall St jumps to 8-week high, led by financials, healthcare

* U.S. CPI falls in Sept; weekly jobless claims down

* Citi rallies after results

* S&P highest since Aug. 20

* Indexes up: Dow 1.3 pct, S&P 1.5 pct, Nasdaq 1.8 pct (Updates to close)

By Caroline Valetkevitch

Oct 15 (Reuters) - U.S. stocks rallied on Thursday after two days of losses, led by sharp gains in biotechnology shares and a rebound in financials following upbeat results from Citigroup.

Equities added to gains late in the session, and eight of the S&P 500 sectors registered gains of more than 1 percent. More than four stocks rose for every one that fell on both the New York Stock Exchange and the Nasdaq.

The S&P 500 health care index jumped 2.2 percent despite a disappointing forecast from HCA Holdings, which fell 5 percent to $72.21. The Nasdaq Biotech Index jumped 4.4 percent, rallying sharply before the close.

""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. "Volume picked up as well, which is a strong indicator."

Citigroup rose 4.4 percent to $52.97 after the third-biggest U.S. bank's results beat estimates, while Goldman Sachs was up 3 percent at $184.96, despite weak results.

The financial sector jumped 2.3 percent, recovering from losses Wednesday when JPMorgan results disappointed.

U.S. consumer prices declined the most in eight months as gasoline costs fell in September, but a rise in core CPI, which strips out food and energy costs, suggested inflation was starting to firm. Unemployment benefit claims fell in the last week, pointing to a strong labor market.

The data, following a weak retail sales report, added to uncertainty over the timing of an interest rate increase by the Federal Reserve.

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.

Nike rose 2.3 percent to $128.79. The world's largest sportswear maker said it expects revenue growth to be faster over the next five years.

On the downside, Netflix slid 8.3 percent to $101.09. The video-streaming service said U.S. subscriber additions came in below expectations for the third quarter. The stock weighed the most on the S&P.

The S&P 500 posted 11 new 52-week highs and 7 new lows; the Nasdaq recorded 42 new highs and 41 new lows.

About 7.0 billion shares changed hands on U.S. exchanges, below the 7.6 billion daily average for the past 20 trading days, according to Thomson Reuters data. (Additional reporting by Abhiram Nandakumar in Bengaluru; Editing by Saumyadeb Chakrabarty and Nick Zieminski)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below