U.S. stocks clawed their way back for a second day following two days of panic selling after the Brexit vote.
The S&P 500 jumped by 34 points to 2,070, the Dow Jones Industrial average added 284 points to 17,694 and the Nasdaq gained 87 points to close at 4,779.
Many traders pointed to oil as the real reason behind the rally, beyond the easing of Brexit fears. Crude oil moved higher by more than 3 percent to end the day at $49.50 a barrel after it was reported that oil stockpiles had dropped. The S&P Retail ETF closed higher by more than 2 percent to finish the day at $41.58.
U.S. consumer spending was higher for the second straight month in May with an increase of 0.4 percent following an increase of 1.1 percent in April. Personal incomes grew just 0.2 percent in May, slowing from the growth of 0.5 percent in April. Personal consumption expenditures for clothing and footwear fell 1.1 percent for the first quarter in 2016.
Nike Inc. managed to end the day ahead more than 3 percent to $55.13 even though investors seemed disappointed with the athletic giant’s fourth-quarter earnings. Several analysts cut their price targets on the company like Citi Group, which lowered the price target from $75 to $61, but retained its buy rating. Credit Suisse also gives the stock an outperform rating, but trimmed the price target from $68 down to $63. D.A. Davidson cut their price target to $66 from $76 and kept the buy rating. Nike stock is down 11 percent year-to-date.
The top performing retail stocks for the day were Tailored Brands Inc., rising 6.6 percent to $12.35; Under Armour Inc., jumping 5.9 percent to $39.75, and Fossil Group Inc., which moved up by 55 percent to $28. The worst performers were Inter Parfums, which fell 1 percent to $28.42 and Elizabeth Arden Inc., which dropped 0.44 percent to $13.72.
Looking ahead, there are no retail earnings for Thursday, but the market will get the weekly initial jobless claims at 8:30 a.m.