Stocks rebound on upbeat earnings reports, tax plan hopes

|By:, SA News Editor

The Trump trade staged a comeback today, as stocks led by financial and industrial firms rose in reaction to some key earnings reports and comments from Treasury Secretary Mnuchin that the administration expected to release a tax plan "very soon."

The S&P financial group spiked 1.7%, paced by a 6% advance in American Express after reporting better than expected Q1 earnings, lifted in part by higher spending numbers from card members.

Industrial stocks jumped 1.2%, led by CSX's 5.6% surge after beating Wall Street earnings estimates; the materials (+1.1%), consumer discretionary (+1%) and tech (+1%) sectors all finished strong, but the energy sector (+0.4%) lagged as U.S. crude oil fell 0.3% to $50.27/bbl.

"Corporate America is hanging in there despite softening economic data," CFRA investment strategist Lindsey Bell says.

U.S. Treasury prices fell across the board, with the 10-year (2.24%) and two-year yields (1.20%) each settling 2 bps higher.