Bloomberg U.S. Stocks Advance, Led by Banks, as Whitney Says Buy Goldman

July 13 (Bloomberg) -- U.S. stocks rallied, sending the Standard & Poor’s 500 Index to its best gain in six weeks, as analyst Meredith Whitney recommended buying shares of Goldman Sachs Group Inc. and said banks may advance 15 percent.

Goldman Sachs climbed 5.3 percent as Whitney gave the firm the only “buy” rating among the eight companies she covers. Bank of America Corp. jumped 9.3 percent, the most in almost two months, after the analyst told CNBC the shares were the “cheapest” among U.S. banks. SanDisk Corp., the largest maker of flash-memory cards, led technology shares higher after Thomas Weisel Partners Group Inc. advised buying the shares.

The S&P 500 rose 2.5 percent to 901.05 at 4:05 p.m. in New York, its best advance since June 1. The Dow Jones Industrial Average added 185.16 points, or 2.3 percent, to 8,331.68. Almost nine stocks gained for each that fell on the New York Stock Exchange.

“We need to have a healthy banking sector for this economy to work properly,” said Keith Wirtz, who helps oversee $19.8 billion as chief investment officer at Fifth Third Asset Management in Cincinnati. “Any positive commentary or news will be good for the banking stocks, will be good for the psychology of the market.”

The Chicago Board Options Exchange Volatility Index, the benchmark gauge of U.S. stock options, slid the most since March. The so-called VIX, which measures the cost of using options as insurance against declines in the S&P 500, tumbled 9.3 percent to 26.31. moree...

Bloomberg U.S. Stocks Gain, Led by Banks, Technology Companies, Retailers

Feb. 5 (Bloomberg) -- U.S. stocks rose, pushing the Standard & Poor’s 500 Index up the most in a week, after MasterCard Inc.’s profit topped estimates and an analyst said Goldman Sachs Group Inc. and Morgan Stanley are healthy enough to repay rescue funds.

The S&P 500 rose 1.6 percent to 845.85. The index lost as much as 1.5 percent in early trading after initial jobless claims unexpectedly jumped to a 26-year high. The Dow Jones Industrial Average climbed 106.41 points, or 1.3 percent, to 8,063.07. The Russell 2000 Index climbed 1.5 percent.

“Stocks are holding more firmly against bad news,” said Robert Schaeffer, a portfolio manager at Becker Capital Management Inc., which oversees $1.6 billion in Portland, Oregon. “We may be beginning to see a change in psychology.”

Still Living’

“Sooner or later somebody has to buy something because people are still living, eating, driving and heating their homes,” said Lawrence Creatura, portfolio manager at Federated Clover Investment Advisors, which manages $2.1 billion in Rochester, New York. “There may be a recovery ahead of us as orders begin to match rates of end demand.”

Retail Rally

Wal-Mart, Target, Macy’s Inc. and Limited Brands Inc. each climbed at least 3 percent after reporting January sales that exceeded estimates as retailers offered discounts to lure U.S. consumers during the longest recession in a quarter-century.

Stocks fell at the open after the Labor Department said the number of Americans filing first-time claims for unemployment insurance benefits increased more than forecast to 626,000 last week, the highest total since October 1982. Data to be released tomorrow is forecast to show economy-wide job losses of 540,000, adding to almost 2.6 million lost last year.

“There’s no evidence that things are getting better, on the other hand there’s no evidence that we’re sinking into a black hole,” Kevin Rendino, who manages $11 billion at BlackRock Inc., said on Bloomberg Television. “If you’re looking for the market to bottom, it’s not going to be the day that unemployment peaks.”

To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net.

Last Updated: February 5, 2009 16:50 EST