US STOCKS-Bank stocks push Wall St higher amid lingering economic worries

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* Cisco rises as profit, revenue top estimates
* Banks rally as Wells Fargo bounces off 11-year low
* Weekly jobless claims worse than expected
* Indexes rise: Dow 0.83%, S&P 0.42%, Nasdaq flat

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By Medha Singh and Ambar Warrick
May 14 (Reuters) - Wall Street's main indexes turned higher
in volatile trade on Thursday with bank stocks leading the
charge, even as renewed worries about Sino-U.S. trade relations
and fears of a prolonged economic weakness lingered.
Bank stocks .SPXBK gained 3.9% with Wells Fargo & Co
WFC.N rising 7.2% off a 11-year low on speculation that the
bank could merge with peer Goldman Sachs Inc GS.N .
Seven of the 11 major S&P sectors were higher with S&P
financials .SPSY up 2.2%. Energy stocks .SPNY also rose 1.6%
as oil prices jumped. O/R
"Value investors probably came in here and said enough is
enough. The markets like that the banks are showing some life,"
said Dennis Dick, proprietary trader at Bright Trading LLC in
Las Vegas.
Markets were recovering from significant losses earlier in
the session as President Donald Trump said he was disappointed
with China over its failure to contain the novel coronavirus,
saying the pandemic cast a pall over his trade deal with
Beijing. Trump's remarks added to concerns over a potentially
extended period of economic weakness that was forecast by
Federal Reserve Chairman Jerome Powell, as well as a warning
from U.S. infectious disease expert Anthony Fauci that the
COVID-19 outbreak was not yet under control this week.
Wall Street's main indexes are set for their steepest weekly
drop since March, following a strong rally off their 2020 lows
on hopes economic activity would pick up as virus-led
restrictions are lifted.
"It's a battle ground between the bulls, who think it's only
going to be a one or two quarter problem and bears, who argue it
is going to take a lot longer that," Bright Trading's Dick said.
"It remains to be seen which side will win."
Economic readings continued to reflect the pain caused by
the pandemic, as data showed 2.98 million Americans filed for
state unemployment benefits last week, higher than economists'
estimates. At 1:50 p.m. ET, the Dow Jones Industrial Average .DJI was
up 192.43 points, or 0.83%, at 23,440.40, the S&P 500 .SPX was
up 11.79 points, or 0.42%, at 2,831.79. The Nasdaq Composite
.IXIC was down 2.22 points, or 0.03%, at 8,860.95.
Cisco Systems Inc CSCO.O rose 4.4% after beating quarterly
revenue and profit estimates, as lockdowns globally boosted
demand for its remote-work tools and networking equipment.
Declining issues outnumbered advancers for a 1.30-to-1 ratio
on the NYSE and a 1.54-to-1 ratio on the Nasdaq.
The S&P index recorded four new 52-week highs and 16 new
lows, while the Nasdaq recorded 16 new highs and 110 new lows.