US STOCKS-Banks lead Wall St higher; cyclicals rally

martes 17 de junio de 2014 16:44 GYT
 

* CPI tops expectations, helping to lift financial stocks

* Oil falls; Obama considers military options in Iraq

* "Momentum" shares rally and help boost the Nasdaq

* Dow up 0.2 pct; S&P 500 up 0.2 pct; Nasdaq up 0.4 pct (Updates to close)

By Ryan Vlastelica

NEW YORK, June 17 (Reuters) - U.S. stocks rose on Tuesday as data pointing to higher inflation lifted financial shares while high-growth tech names attracted renewed attention.

The S&P financial sector index was the day's biggest gainer, up 0.9 percent, though all cyclical sectors, which are tied to the pace of economic growth, outperformed for the day. E*Trade Financial was the S&P 500's top gainer, up 7.7 percent at $22, while Charles Schwab Corp climbed 5.5 percent to $27.30.

The Consumer Price Index rose 0.4 percent in May, the biggest gain in more than a year, pushing investors to sell some U.S. government debt. The yield on the 10-year Treasury note shot up as high as 2.65 percent .

"Typically inflation accompanies economic growth, so this is a positive, especially with people looking for any reason to buy," said Carl Kaufman, who helps manage $7 billion at the Osterweis Strategic Income Fund in San Francisco.   Continuación...