(Corrects paragraph 3 to say trillion, not billion)
* Investors cautious ahead of Trump-Xi meeting
* Financial sector up after four-day losing streak
* Energy stocks gain with oil prices
* Indexes up: Dow 0.27 pct, S&P 0.28 pct, Nasdaq 0.25 pct
By Sinead Carew
April 6 Wall Street's three major indexes on
Thursday rebounded from Wednesday's sharp decline as investors
reconsidered their reaction to Federal Reserve meeting minutes.
Energy stocks rose with oil prices and financial stocks were
on track for their first percentage gain this week.
The stock market had closed lower on Wednesday, reversing a
rally after signals that the Fed would start to trim its $4.5
trillion balance sheet this year.
"People in hindsight decided the market over-reacted," said
Stephen Massocca, Senior Vice President at Wedbush Securities in
San Francisco. "The Fed isn't going to be indiscriminately
pulling the prop out from under the market. There will be some
sensitivity to what's going on in the economy."
He also said that investors appeared to react positively to
news that Republicans had pushed through a rule change that
would likely pave the way for the confirmation of President
Donald Trump's conservative nominee for the U.S. Supreme Court.
At 2:45 P.M. EDT (1845 GMT), the Dow Jones Industrial
Average was up 54.97 points, or 0.27 percent, to
20,703.12, the S&P 500 had gained 6.69 points, or 0.28
percent, to 2,359.64 and the Nasdaq Composite had added
14.40 points, or 0.25 percent, to 5,878.88.
Some investors were cautious ahead of Trump's meeting with
his Chinese counterpart Xi Jinping as they await news on
China-U.S. trade relations and discussions on reining in North
Korea's arms program.
Doubts are rising about Trump's ability to deliver on
pro-growth promises such as tax cuts. U.S. House of
Representatives speaker Paul Ryan said Wednesday the tax reform
bill could take longer than the stalled bill to overhaul
Eight of the 11 major S&P sectors were higher. The energy
index rose 0.8 percent as oil prices rose
to near one-month highs. The S&P's Consumer Discretionary
index was the S&P's biggest driver with Comcast Corp
its biggest contributor with a 2 percent gain to $38.11 after it
announced a wireless service.
Ahead of the start of the corporate earnings season next
week, some investors are also cautious given the lofty
valuations. The S&P 500 index is trading at about 18 times
forward earnings estimates, above its long-term average of 15.
"The market's still look strong but they are massively
overbought and we do have bank earnings beginning to come in
next week. That will tell the real tale for the sector," said
Phil Davis, chief executive of PSW Investments.
L Brands jumped 10 percent after reporting a
smaller-than-expected drop in March sales.
Advancing issues outnumbered declining ones on the NYSE by a
3.07-to-1 ratio; on Nasdaq, a 1.99-to-1 ratio favored advancers.
The S&P 500 posted 8 new 52-week highs and four new lows;
the Nasdaq Composite recorded 28 new highs and 58 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by
Savio D'Souza and James Dalgleish)