Banks in focus as Wall Street snaps back

Thursday was a trading day filled with uncertainty and sudden swings for Wall Street.

Investors had one eyes on Texas where the reopening was put on pause due to a surge in new COVID-19 cases...and the other eye on the banking sector where regulators announced they would relax parts of the so-called Volcker rule put in place after the financial crisis.

In the end, stocks settled the day with gains across the board - led by a rally in bank shares.

For Clark Kendall, CEO, of Kendall Capital Management, the Federal Reserve once again saved the day.

"My take-away on today's action is quite frankly the market opened down because of the increase concern over the coronavirus cases increase. And then we saw, you know mid-session today we saw basically the Federal Reserve stepping in and the Paul Volcker rule - we're going to ease that; we're going to put more capital - another example of the federal government keeping this economy going."

But the news for banks wasn't as good after the market close. The Fed placed a cap on dividend payments and a ban on share repurchases from July through September.

Wall Street is also keeping watch on the economy. In another sign the rebound in the labor market has stalled, new applications for unemployment benefits hovered just under 1.5 million. Claims for jobless benefits remain double the highs seen during the great recession. The number of Americans getting an unemployment check now sits at 30.6 million.

Walt Disney was in focus for the second day in a row. The media and entertainment conglomerate said its theme parks and resort hotels in California will not re-open as planned on July 17th. Shares of Disney finished lower.