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Stocks Pop, Led by Banks; State Street Jumps

Stocks advanced Wednesday, led by financials after State Street said it expects to beat earnings expectations.

The Dow jumped over 100 points, led by JPMorgan , Hewlett-Packard and Cisco , after snapping a seven-session losing streak on Tuesday.

State Street shares jumped more than 10 percent after the bank said it expects second-quarter earnings will top analysts' expectations.

Also giving the sector a boost was news that bank-card delinquencies fell to their lowest level in eight years.

Family Dollar reported its profit rose in the latest quarter as cheap stuff remained in demand but the dollar-store chain's forecast fell short of expectations.

Wall Street also was waiting for details on the methodology of the European Union bank stress tests.

Retailers were among the biggest drags in Tuesday's session after Citigroup slashed its forecast and price targets on a slew of retailers, including Home Depot ,, Macy's and Walmart but raised its rating Family Dollar.

This comes ahead of June sales reports from the nation's largest retailers, due out on Thursday. Analysts expect to see a rise of 3.2 percent, according to the latest Thomson Reuters survey, but suggest it may only be a temporary reprieve due to the warm weather and Memorial Day holiday.

A parade of Fed speakers today: Dallas Fed President Richard Fisher will speak to CNBC at 10 am and Minneapolis Fed President Narayana Kocherlakota will speak in Montreal at 3:30 pm ET. Plus, Richmond Fed President Jeffrey Lacker speaks at 7:15 pm.

But disappointing data from the U.S. services sector Tuesday helped to underscore fears over the strength of the economic recovery.

BPCEO Tony Hayward is visiting Abu Dhabi and has reportedly met with representatives of one of the world's largest sovereign wealth funds. Neither the company nor wealth fund representatives have issued any official comment. BP has been exploring various options to raise cash as it continues to combat the Gulf oil spill.

This Week:

WEDNESDAY: Fed's Fisher and Kocherlakota speak
THURSDAY: June chain-store sales; weekly jobless claims; consumer credit
FRIDAY: Wholesale trade

Correction: An earlier version of this report incorrectly said that Jeffrey Lacker, president of the Richmond Federal Reserve, was scheduled to speak on Wednesday.