Bloomberg U.S. Stocks Gain, Extend Global Rally; Treasuries, Dollar Fall

April 2 (Bloomberg) -- U.S. stocks rallied, extending a global advance, as world leaders agreed on measures to fight the recession and accounting regulators approved a rule change that may boost bank profits. Oil rose the most in three weeks, while the dollar and Treasuries fell.

Caterpillar Inc., Walt Disney Co. and DuPont Co. climbed more than 7.5 percent amid growing speculation the world economy is stabilizing. Wells Fargo & Co. increased 5.9 percent and Goldman Sachs Group Inc. gained 3.6 percent after the Financial Accounting Standards Board voted to relax so-called fair-value rules. Benchmark indexes jumped even as new claims for unemployment insurance benefits swelled to a 26-year high.

The Standard & Poor’s 500 Index rose 2.9 percent to 834.38. The Dow Jones Industrial Average added 216.48 points, or 2.8 percent, to 7,978.08. Both closed at their highest levels since the second week of February. Europe’s Dow Jones Stoxx 600 rose 4.9 percent. The MSCI Asia Pacific Index soared 4.8 percent.

“Right or wrong, the belief is we may have seen the worst of the economic side of things,” said William Stone, the chief investment strategist in the wealth management unit of PNC Financial Services Group Inc., which oversees $110 billion in Philadelphia.

G-20 Meeting

The Group of 20 policy makers, meeting in London, pledged more than $1 trillion in aid to revive the global economy. They boosted the resources of the International Monetary Fund and offered cash to revive trade, while sidestepping the question of whether to deliver more stimulus in their own economies. The G- 20 also called for stricter limits on hedge funds, executive pay, credit-rating companies and risk-taking by banks.

The U.S. needs to borrow $3.25 trillion for the fiscal year ending Sept. 30, including sales to replace maturing securities, according to Goldman.

The MSCI Emerging Markets Index rose 5.9 percent to an almost six-month high on speculation more countries may follow Mexico in taking advantage of new loan conditions from the International Monetary Fund. more...

Bloomberg U.S. Stocks Gain, 10-Year Treasury Yields Fall Most Since 1962

March 18 (Bloomberg) -- U.S. stocks and Treasuries surged and the dollar tumbled after the Federal Reserve unexpectedly announced plans to buy $1 trillion of bonds in an effort to lower consumer borrowing costs and end the recession.

The Standard & Poor’s 500 Index added 2.1 percent, extending its rally since last week’s 12-year low to 17 percent. Yields on 10-year notes dropped the most since at least January 1962 after the central bank said it will spend $300 billion buying Treasury debt and up to another $750 billion on bonds backed by government-controlled mortgage companies. The dollar sank the most against the euro since September 2000.

“This is a huge step,” said Thomas Girard, who helps manage $115 billion in fixed-income securities with New York Life Investment Management in New York. “It’s a draw the line in the sand-type of event.”

Fed Chairman Ben S. Bernanke is trying to bolster housing and hasten the end of the 14-month U.S. recession. He stepped up efforts after unemployment increased to 8.1 percent and economists forecast the economy will shrink through the middle of the year. Fed officials also kept the benchmark interest rate at between zero and 0.25 percent to combat the “weak” short- term economic outlook, according to a statement today.

‘Big Positive’

“This is definitely a big positive,” said Noman Ali, a Toronto-based money manager at MFC Global Investment Management whose group manages $20 billion of U.S. equities. “This will bring down the risk premium and interest rates for corporate borrowers as well. That helps credit growth and hopefully helps turn the economy.”

‘Powerful Bullet’

“We thought it was a lower-probability event but we always knew that if the Fed did use this clearly powerful bullet it would cause a huge drop in yields,” said Suvrat Prakash, an interest-rate strategist in New York at BNP Paribas Securities Corp., another primary dealer.

Yields on 10-year Treasury notes rose 33 basis points in the two days after the last policy meeting Jan. 28, when the Federal Open Market Committee said the central bank might buy longer-term Treasuries to revive lending but gave no further details. more...

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