By Medha Singh and Devik Jain
July 15 (Reuters) - Wall Street gained on Wednesday with the S&P 500 nearing its highest in more than four months following a strong quarterly showing by Goldman Sachs and promising early data for a potential COVID-19 vaccine.
The U.S. lender GS.N jumped 2.9% as its trading revenue doubled in the second quarter, driven by big swings in stock and bond markets since March.
Morgan Stanley MS.N gained 2.0% and Bank of America BAC.N 1.9% ahead of their results on Thursday, which would wrap up earnings from the big six U.S. banks. The broader banking index .SPXBK climbed 2.7%.
Energy .SPNY, industrials .SPLRCI and financial .SPSY stocks led gains among the major S&P sectors.
"Better-than-expected earnings help the mood because we're in an environment where expectations have gotten very low," said Stephen Lee, portfolio manager at Logan Capital Management in Newtown Square, Pennsylvania.
The three main U.S. stock indexes have recouped most of their losses from the coronavirus-led slump, with a raft of stimulus measures and encouraging economic data lifting the S&P 500 to within 5% of its record high hit in February.
With the second-quarter earnings season now underway, investors are looking for annual forecasts from marquee companies for signs of the pace of the rebound in Corporate America.
Wall Street's fear gauge .VIX eased for the second straight day after spiking on Monday amid a record surge in U.S. coronavirus cases.
"We're not surprised to see volatility on a day-to-day basis as investors balance between better-than-expected proven recovery, waiting to see earnings results, and how successfully this healthcare challenge is going to be managed," Lee said.
UnitedHealth Group Inc UNH.N fell 2.3% after warning of rising costs later this year as Americans catch up on less urgent surgeries halted by the coronavirus pandemic.
Moderna Inc MRNA.O surged 17.8% to a record high after a small-scale study showed its experimental COVID-19 vaccine produced high levels of virus-killing antibodies, bolstering hopes the shot could prove effective in later stages of testing.
Travel-related stocks Carnival Corp CCL.N, Royal Caribbean Cruises Ltd RCL.N, Marriott International MAR.O and Wynn Resorts WYNN.O rose between 4.6% and 8.2%, with the S&P 1500 airlines index .SPCOMAIR up 5.5%.
At 9:38 a.m. ET, the Dow Jones Industrial Average .DJIwas up 264.92 points, or 0.99%, at 26,907.51, the S&P 500 .SPXwas up 25.78 points, or 0.81%, at 3,223.30, and the Nasdaq Composite .IXICwas up 49.05 points, or 0.47%, at 10,537.62.
Apple AAPL.O rose 1.2% after Europe's second-top court rejected an EU order to the iPhone maker to pay 13 billion euros ($14.78 billion) in Irish back taxes.
Advancing issues outnumbered decliners 5.67-to-1 on the NYSE and 4.55-to-1 on the Nasdaq.
The S&P index recorded 18 new 52-week highs, while the Nasdaq recorded 32 new highs. Neither index recorded a new low.
(Reporting by Medha Singh in Bengaluru; Editing by Maju Samuel)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.