US STOCKS-Financial shares push Wall Street higher in volatile trading

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* Defensive utilities sector underperforms
* Disney slipped as it delayed reopening theme parks
* Boeing declined as rival reached a crucial target
* Indexes up: Dow 0.18%, S&P 0.2%, Nasdaq 0.30%

(Updates to late afternoon, adds commentary, changes byline,
adds New York dateline)
By Sinéad Carew
New York, June 25 (Reuters) - Wall Street's main indexes
edged higher in choppy trading on Thursday, as financial stocks
gained ground on regulatory changes even though investors
worried about alarming increases in new coronavirus cases and
jobless claims.
The S&P 500 banks sub-index .SPXBK rose 1.8% as U.S.
banking regulators eased two rules covering large banks with
complex trading and investment portfolios. Investors remained nervous however as the number of new
virus cases in U.S. states grew, especially in the West and
South of the country.
Texas Governor Greg Abbott said he was halting his state's
phased economic reopening in response to a jump in COVID-19
infections and hospitalizations. The flare-up in cases in recent days has taken some wind out
of a Wall Street rally powered by hopes of a quick economic
recovery and massive government stimulus efforts.
After coming within 5% of its record high in early June, the
benchmark S&P 500 has lost nearly 6% since June 8.
"As the virus develops that is the most important piece of
news. The last few days the news has been disturbing. If
anything it is surprising the markets haven't reacted more
negatively," said Tom Martin, senior portfolio manager at
GLOBALT Investments in Atlanta.
The relatively calm reaction may be due to investor
confidence that government support will keep coming.
"Markets are aware that the governments across the world and
the central banks don't want to let the negative effect on the
economy get out of control," Martin said. "That increases
investors' comfort in continuing to own stocks.
At 1:57 p.m. EDT, the Dow Jones Industrial Average .DJI
rose 46.53 points, or 0.18%, to 25,492.47, the S&P 500 .SPX
gained 6 points, or 0.20%, to 3,056.33 and the Nasdaq Composite
.IXIC added 29.33 points, or 0.3%, to 9,938.50.
All the three major indexes opened lower after data showed
the number of Americans filing claims for unemployment benefits
fell less than expected last week, likely as hiring by reopening
businesses is being partly offset by a second wave of layoffs.
Wall Street's fear gauge, the CBOE volatility index .VIX ,
was trading lower after rising earlier in the session.
The S&P's financial sector .SPSY gave the benchmark its
biggest boost after the new rules were announced. The Federal
Reserve will release results of the lenders' stress tests after
the markets close.
The energy sector .SPNY gained about 0.5%, as oil prices
recovered. O/R Utilities was the weakest sector with a 1.8%
decline.
Walt Disney Co DIS.N fell 1.9% after it delayed the
reopening of theme parks due to the health crisis. A report also
said the company was considering postponing the July 24 release
of "Mulan." Boeing Co BA.N tumbled 2.8% as rival Airbus AIR.PA
reached a crucial jetliner production target and smoothed recent
industrial problems. Declining issues outnumbered advancing ones on the NYSE by a
1.09-to-1 ratio; on Nasdaq, a 1.17-to-1 ratio favored advancers.
The S&P 500 posted four new 52-week highs and no new lows;
the Nasdaq Composite recorded 55 new highs and eight new lows.