After the closing bell the Fed reported that most of the biggest U.S. banks passed the so-called stress tests. Earlier stocks posted a second winning session. Bobbi Rebell reports.
After the closing bell Wednesday, the Federal Reserve found that all but two of the 33 biggest U.S. financial institutions passed the so-called stress tests, with only Deutsche Bank and Santander falling short. Morgan Stanley got only conditional approval for its capital plans in the stress test. Major advances for a second day in a row on Wall Street. Investors looked for bargains after Britain's vote to leave the European Union wiped out about $3 trillion globally in a two-day selloff. Oil companies like Chevron and Exxon among the big winners. The focus is now shifting beyond Brexit, which will take a long time to play out according to Art Hogan of Wunderlich Securities: SOUNDBITE: ART HOGAN, CHIEF INVESTMENT STRATEGIST, WUNDERLICH SECURITIES (ENGLISH) SAYING: "Right now I think we are going to tread water a bit. But I can tell you the things that are going to happen in the meantime is we are going to realize it is not the end of the world. We are going to realize we've got another earnings reporting season coming up after this quarter. We are going to realize the Fed is probably not going to raise interest rates with this as an overhang probably for most of this year. " Adding to the upbeat sentiment, U.S. consumer spending rose 4-tenths of a percent in May. Consumers account for about two-thirds of economic activity. Monsanto not ruling out a deal with Bayer. Despite rejecting a previous $62 billion offer, the seed company now says the two companies are talking about "alternative strategic options." In Europe, shares rose as concerns about Britain's decision to leave the European Union eased.