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 Advance, Almost Erasing Dow Average’s Loss for 2009

June 6 (Bloomberg) -- U.S. stocks rose for a third week, almost erasing the Dow Jones Industrial Average’s 2009 loss, on further signs the economy is improving.

Boeing Co. and Caterpillar Inc. climbed at least 8.5 percent, leading industrial shares to the steepest advance among 10 industries in the Standard & Poor’s 500 Index, after reports on personal income, manufacturing and construction beat economists’ predictions. Alcoa Inc. increased the most in the Dow average, advancing 19 percent, as metals gained on speculation demand is improving.

“We may be seeing a winding down of the recessionary period,” said Walter Gerasimowicz, the New York-based chief executive officer at Meditron Asset Management, which oversees $1.1 billion. “The market is pricing in that we’re returning to growth and the recession has bottomed.”

The S&P 500 climbed 2.3 percent to 940.09. The Dow added 262.80 points, or 3.1 percent, to 8,763.13. The measure, which fell 25 percent between Dec. 31 and March 9, now must add 0.2 percent to be up in 2009. The S&P 500 has been up for the year since May. The Russell 2000 Index of small companies advanced 5.7 percent.

The S&P 500 has climbed 39 percent from a 12-year low on March 9 as the U.S. government and the Federal Reserve pledged $12.8 trillion to end the recession and the nation’s three largest banks said they made money at the start of the year. The benchmark equity index reached a value of 15.4 times the earnings of its companies on June 2, the most expensive level since October yet lower than the 19.8 monthly average during the past decade.

Average Price

The S&P 500 closed above its average price over the past 200 days for the first time since December 2007 on June 1, a bullish signal to so-called technical analysts who study charts to predict market trends. more...