Wall Street enjoys another day in rally mode as bulls scored post-Brexit deals.
The S&P 500 bounced back into positive territory for 2016 Wednesday after seeing red in a major selloff earlier in the week. The benchmark index has recovered more than half of the losses suffered Friday and Monday.
The S&P 500 was up 1.70%, the Dow Jones Industrial Average rose 1.64% and the Nasdaq climbed 1.86%.
Crude oil continued to push higher on Wednesday, recovering alongside equities. A steeper-than-expected decline in domestic inventories helped to support crude's rally. Domestic crude stocks fell by 4.1 million barrels in the week ended June 24, according to the Energy Information Administration, more than an anticipated 2.4-million-barrel drop.
West Texas Intermediate crude oil rose 4% to $49.77 a barrel on Wednesday.
The shock of the United Kingdom's vote to exit the European Union last week sent global markets into a spiral Friday and Monday, eliminating $3 trillion in market capitalization. Such a steep descent over just two sessions has since presented traders with opportunity to pick up heavily oversold equities. The S&P 500 rose more than 1% Tuesday.
Moody's downgraded its outlook for the U.K. banking sector to negative from stable due to the expected impact of the U.K.'s decision to leave the European Union. The credit agency also downgraded its outlook for 12 U.K. banks including Lloyds (LYG) , Barclays (BCS) and HSBC (HSBC) . Fitch and S&P cut their credit ratings for U.K. earlier in the week.
Consumer spending in the U.S. slowed somewhat in May after a sharp increase in April, according to the Bureau of Economic Analysis. Spending rose 0.4% due largely to higher gas prices. Income remained weak in May, rising just 0.2% compared to an expected 0.7%.
Pending home sales in May fell at a far-steeper pace than analysts expected, according to the National Association of Realtors' index. The measure, which looks at contracts signed while the deal has not yet closed, fell 3.7% in May to a reading of 110.8. Analysts expected a 1% decline. The first decline in nearly two years was mainly driven by tight inventory and strong demand. In April, the measure reached its highest level since early 2006.
General Electric (GE - Get Report) moved higher after the U.S. government withdrew its designation as a systematically important non-bank financial institution. The label required increased regulation and oversight of operations. The Financial Stability Oversight Council said GE's divestitures and reorganization had lifted the designation.
In earnings news, Nike (NKE - Get Report) fell short of fourth-quarter sales estimates. Revenue jumped nearly 6%, to $8.24 billion, but came in shy of expectations by $40 million. Quarterly earnings of 49 cents a share beat by a penny. Nike's future orders growth for June through November in North America rose 6%, less than an expected 9% increase.
Monsanto (MON) missed quarterly earnings forecasts and offered a softer full-year outlook. The agricultural company earned an adjusted $2.17 a share in its third quarter, below estimates of $2.40. Monsanto expects full-year adjusted earnings at the "low end" of its previous guidance of $4.40 to $5.10 a share.
General Mills (GIS - Get Report) raised its quarterly dividend and posted stronger-than-expected growth for fiscal 2017. The owner of Betty Crocker forecasts full-year earnings growth of at least 6%, above consensus of 4%. Its quarterly dividend was boosted by 4% to 48 cents a share.