US STOCKS-Wall St propped up by bank stocks as Treasury yields rise

Reuters

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    * Financials gain as 10-yr Treasury yields top 3 pct
    * Rate-sensitive utilities and real estate sectors fall
    * NiSource slides on link to Boston suburbs gas blast
    * Walmart falls on bearish Goldman Sachs comments
    * Indexes up: Dow 0.21 pct, S&P 0.09 pct, Nasdaq 0.15 pct

 (Updates prices, adds comment)
    By Shreyashi   Sanyal
    Sept 14 (Reuters) - U.S. stocks edged higher on Friday as
banks gained after 10-year U.S. Treasury yields topped 3
percent, but gains were capped by a drop in the rate-sensitive
utilities, real estate and telecom sectors.
    Financial stocks rose  .SPSY  0.73 percent, the most among
the 11 major S&P 500 sectors, after the benchmark government
yield  US10YT=RR  broke back above the key technical level for
the first time since the start of Aug. 2.  US/ 
    Helping drive yields was an upward revision in U.S. retail
sales for July, which kept intact expectations of strong
economic growth in the third quarter. August sales, however,
recorded their smallest gain in six months.  urn:newsml:reuters.com:*:nL2N1VZ1PB
    "The rising yields are going to put some pressure on
equities, so everybody will focus on treasury markets for
direction on equities," said Tom White, chief market strategist
at TradeWise Advisors in Chicago, Illinois.
    With yields moving higher, the real estate index  .SPLRCR 
fell 1.24 percent and utilities  .SPLRCU  0.78 percent. Telecoms
 .SPLRCL  declined 0.75 percent.
    Also weighing on utilities was NiSource  NI.N , which
tumbled 9.1 percent after fire investigators said they suspected
the company's unit, Columbia Gas, was linked to a series of gas
explosions in Boston suburbs on Thursday.  urn:newsml:reuters.com:*:nL2N1W00A7
    "We're seeing a back-and-forth movement, which is something
we saw throughout the week, (as) valuations are pretty high to
begin with," said Scott Brown, chief economist at Raymond James
in St. Petersburg, Florida.
    "But it's healthy to have a little bit of a pause and it's
probably welcome."
    At 11:37 a.m. ET the Dow Jones Industrial Average  .DJI  was
up 53.92 points, or 0.21 percent, at 26,199.91. The S&P 500
 .SPX  was up 2.48 points, or 0.09 percent, at 2,906.66 and the
Nasdaq Composite  .IXIC  was up 12.23 points, or 0.15 percent,
at 8,025.94.
    Energy stocks  .SPNY  rose 0.76 percent as U.S. crude oil
prices jumped more than 1 percent.
    The consumer discretionary sector  .SPLRCD  fell 0.18
percent, weighed down by Walmart  WMT.N , which dropped 0.6
percent after Goldman Sachs raised questions around the purchase
of a majority stake in India's Flipkart.
    L Brands Inc  LB.N  jumped 5.3 percent after the owner of
Victoria's Secret said it would close all 23 of its Henri Bendel
stores and the Henri Bendel e-commerce website in January.
 urn:newsml:reuters.com:*:nL3N1VZ69P
    Adobe Systems  ADBE.O  rose 3.2 percent after the company
topped quarterly revenue and profit expectations.  urn:newsml:reuters.com:*:nL3N1VZ5U5
    Advancing issues outnumbered decliners by a 1.18-to-1 ratio
on the NYSE and a 1.87-to-1 ratio on the Nasdaq.
    The S&P index recorded 42 new 52-week highs and no new lows,
while the Nasdaq recorded 92 new highs and 39 new lows.

 (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Shounak
Dasgupta and Arun Koyyur)
 ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780 ;
Reuters Messaging:
Shreyashi.Sanyal.thomsonreuters.com@reuters.net))

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