Rebound in underperformers ends Wall Street losing streak

NEW YORK (Reuters) - U.S. stocks ended a three-day losing streak on Wednesday as recent underperformers led a thinly traded rally that wasn't seen as strong enough to overcome worries about waning global demand.

The S&P 500 hit its lowest intraday level since April 19 on Tuesday, and recent weak breadth suggested selling had gone too far for now. Energy and materials shares, which have lived and died by hopes for robust global recovery, returned to their winning ways.

"Investors are tired of selling the market, especially with commodities finding their feet," said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in Greenwich, Connecticut.

Energy shares gained on an unexpected drop in distillate stockpiles, which boosted heating oil futures. The S&P energy index advanced 1.5 percent, by far the biggest percentage gainer among S&P 500 sectors. Dow component Exxon Mobil Corp rose 0.8 percent to $81.96 as the PHLX oil service sector index added 2.8 percent.

Bespoke Investment Group said breadth in the S&P 500 was very close to extremely oversold levels and that it was a buying opportunity in March, which was the last time those levels were reached.

Despite that, further upside was seen as limited, given headwinds from Europe and the prospect of an environment without supportive monetary policy.

"There's a lot of listlessness, given the euro-zone issues and the volatility both ways in commodities, which is unsettling," said Rob McIver, co-portfolio manager of the Jensen Portfolio in Portland Oregon.

"There are still opportunities, but also very divergent views about what will happen after