Banks lead US stocks slightly higher; oil slumps

Associated Press

Banks and other financial companies led U.S. stocks slightly higher Wednesday, snapping a two-day losing streak for the market.

The latest gains were partially offset by a slide in energy companies following a steep slump in the price of U.S. crude oil, which fell 5.1 percent, its biggest single-day drop in nearly three months.

Trading was mostly subdued, with the major indexes trading in a narrow range as investors sized up the latest company earnings and looked ahead to testimony today from former FBI Director James Comey, part of a congressional investigation into Russia’s possible election meddling.

“From an investor perspective it would be nice to get another potential distraction out of the way and move toward the threefold mandate of the Trump administration: deregulation, reduced taxes and improved infrastructure, because they have been delayed, delayed and delayed,” said Erik Davidson, chief investment officer for Wells Fargo Private Bank.

The major indexes remain slightly below record highs set late last week.

Stocks wavered between small gains and losses early Wednesday as investors weighed the latest company earnings reports.

Comey’s appearance before the Senate intelligence committee will be his first public comments since he was abruptly ousted by President Donald Trump on May 9.

The former director’s associates say Trump asked Comey if he could back off an investigation into Michael Flynn, who was fired as national security adviser because he misled the White House about his ties to Russia.

Investors will try to glean how the outcome of the hearing may play into the administration’s efforts to forge ahead with Trump’s pledge to cut taxes, increase infrastructure spending and implement other business-friendly policies.