U.S.
stocks rose from their lowest levels in nearly five months, as Chinese
economic-growth data eased investor concern over a hard landing while
still leaving open the possibility of government stimulus.
Consumer
shares paced the advance, with Procter & Gamble Co. and Altria
Group Inc. up at least 1.2 percent. Morgan Stanley increased 1.7 percent
after reporting quarterly profit and revenue that exceeded estimates.
Bank of America Corp. weighed, falling 2.6 percent, even as its results
exceeded estimates. Crude prices remained an influence on fragile
sentiment, with equity gains tracking today’s fluctuations in oil.
The
Standard & Poor’s 500 Index added 0.3 percent to 1,886.57 at 12:17
p.m. in New York, after earlier rising as much as 1.1 percent. The Dow
Jones Industrial Average climbed 59.58 points, or 0.4 percent, to
16,047.66. The Nasdaq Composite Index was little changed. Trading in
S&P 500 shares was 26 percent above the 30-day average for this time
of the day.
European
and Asian stocks rose amid speculation of further Chinese state aid
after a report showed gross domestic product expanded 6.9 percent in
2015, just shy of the government’s 7 percent target, and the least since
1990.
The
S&P 500 on Friday slid to its lowest level since Aug. 25. The index
was off to its worst-ever start to a year, amid concerns that China’s
policy interventions won’t be enough to stoke growth in the world’s
second-biggest economy, while oil tumbled to a 12-year low.
The
equity benchmark is down more than 11 percent from its record set last
May, and has slumped 9 percent since the Federal Reserve raised interest
rates last month for the first time since 2006. Meanwhile, a measure of
volatility has jumped the most since a selloff in August which sent the
S&P 500 into its first correction in four years.
Association
of Home Builders/Wells Fargo builder sentiment index held at 60 in
January after the prior month was revised down a point, figures from the
Washington-based group showed.
As
corporate earnings gather more attention with investors weighing the
health of the U.S. economy. Netflix Inc. and International Business
Machines Corp. are also among those posting results today after markets
close. Analysts project profits for index members fell 7 percent in the
fourth quarter.
Eight
of the 10 main groups in the S&P 500 advanced, boosted by a rebound
among consumer staples stocks, which gained 1 percent. The group fell
1.6 percent Friday to close at a two-month low. Modelez International
Inc. and Campbell Soup Co. added more than 2 percent today.
Viacom
Inc. and Macy’s Inc. helped power a rally in consumer discretionary
shares after the group fell for a sixth week out of seven. Macy’s rose
3.3 percent after David Einhorn’s Greenlight Capital LLC reported a new
position in the retailer. Greenlight said in a letter that a private
equity firm and a real estate investment trust could team up to purchase
the company and "unlock the value" of its land and buildings.
Meanwhile, Viacom advanced 5.4 percent after the media giant was said to
be targeted by an activist investor.
Health
care stocks were also among the biggest gainers in the U.S. benchmark.
Tenet Healthcare Corp. climbed 2.4 percent after the hospital operator
added two members of Glenview Capital Management to its board. Johnson
& Johnson rose 1.2 percent amid its plan to cut 3,000 jobs to
improve its lagging medical-device unit.
The
second-biggest U.S. lender, Bank of America said profit rose 9.4
percent thanks to fixed-income trading revenue. Still, shares erased
earlier gains, falling as much as 2.7 percent. Meanwhile, Morgan Stanley
climbed 1.7 percent, paring an earlier 4.5 percent surge, after its
better-than-estimated earnings and plans for cutting at least $1 billion
in costs by next year.
Source : Bloomberg
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