U.S. Stocks Advance, Led by Banks, as Whitney Says Buy Goldman
July 13 (Bloomberg) -- U.S. stocks rose, with the Standard & Poor's 500 Index rebounding following four weeks of losses, as analyst Meredith Whitney advised buying shares of Goldman Sachs Group Inc. and said banks may advance 15 percent.
Goldman Sachs gained 3.3 percent after Whitney gave the firm the only "buy" recommendation among the eight companies she covers, while Bank of America Corp. climbed 4 percent after the analyst told CNBC the shares were the "cheapest" among U.S. bank stocks. JPMorgan Chase & Co. and Wells Fargo & Co. each rose at least 2.3 percent. Energy shares were the biggest drag on the S&P 500 as oil slid for the eighth day in nine.
The S&P 500 advanced 0.6 percent to 884.26 at 10:42 a.m. in New York. The Dow Jones Industrial Average added 49.57 points, or 0.6 percent, to 8,196.09. About 11 stocks gained for every 10 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."
U.S. stocks capped a fourth straight week of declines on July 10, matching the longest losing streak in a year, as consumer sentiment dropped more than estimated and oil's steepest retreat since January dragged down energy shares. Investors this week will be looking at reports on retail sales and factory production to gauge the strength of the economy after a $787 billion stimulus bill passed in February.
Earnings Watch
Goldman Sachs, JPMorgan Chase & Co., International Business Machines Corp. and Google Inc. are among more than 30 companies in the S&P 500 Index scheduled to report results this week. Analysts estimate the group's profits fell an average 35 percent in the second quarter and will decrease 21 percent from July through September, according to data compiled by Bloomberg.
"It's going to be a while before we're confident we're going to have a strong, sustainable recovery in place," Treasury Secretary Timothy Geithner said, according to the transcript of an interview with "CNN's Fareed Zakaria GPS" show broadcast yesterday.
Goldman Sachs climbed 3.2 percent to $146.43. Whitney, founder of Meredith Whitney Advisory Group, upgraded the shares to "buy," her first such rating on a U.S. bank since she started the firm.
Goldman Sachs may post the largest profit since it set earnings records in 2007 when it reports earnings on July 14. The company will probably say it earned $2.2 billion, or $3.65 a share, excluding some items in the three months through June, according to the average estimate of analysts surveyed by Bloomberg. The stock may reach $186 from $141.87 on July 10, Whitney said in a note to clients.
'All Eyes' on Goldman
"People are questioning the strength of the recovery and whether there is need for a second stimulus package," said Alberto Espelosin, who helps manage the equivalent of $10.5 billion at Zaragoza, Spain-based Ibercaja Gestion. "All eyes will be on Goldman's earning's tomorrow."
Best Buy Co., the world's largest electronics retailer, rose 2.8 percent to $33.70. The shares were raised to "outperform" from "perform" at Oppenheimer & Co., which said market "sentiment toward Best Buy has turned decidedly negative lately." The shares have dropped 13 percent since April.
Bets against the S&P 500 rose to the highest since April last month as investors shorted more shares of health-care, technology and financial companies, according to data compiled by U.S. exchanges and Bloomberg last week.
CIT Slides
CIT Group Inc. lost 20 percent to $1.22. The century-old lender that hasn't been able to persuade the government to back its debt sales, says its demise would put 760 manufacturing clients at risk of failure and "precipitate a crisis" for as many as 300,000 retailers.
CapitalSource Inc. fell 2.3 percent to $4.39. The loan provider to small and mid-sized businesses said it plans a public offering of about 17.5 million shares of its common stock.
To contact the reporter on this story: Whitney Kisling in New York at wkisling@bloomberg.net .
July 13 (Bloomberg) -- U.S. stocks rose, with the Standard & Poor's 500 Index rebounding following four weeks of losses, as analyst Meredith Whitney advised buying shares of Goldman Sachs Group Inc. and said banks may advance 15 percent.
Goldman Sachs gained 3.3 percent after Whitney gave the firm the only "buy" recommendation among the eight companies she covers, while Bank of America Corp. climbed 4 percent after the analyst told CNBC the shares were the "cheapest" among U.S. bank stocks. JPMorgan Chase & Co. and Wells Fargo & Co. each rose at least 2.3 percent. Energy shares were the biggest drag on the S&P 500 as oil slid for the eighth day in nine.
The S&P 500 advanced 0.6 percent to 884.26 at 10:42 a.m. in New York. The Dow Jones Industrial Average added 49.57 points, or 0.6 percent, to 8,196.09. About 11 stocks gained for every 10 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."
U.S. stocks capped a fourth straight week of declines on July 10, matching the longest losing streak in a year, as consumer sentiment dropped more than estimated and oil's steepest retreat since January dragged down energy shares. Investors this week will be looking at reports on retail sales and factory production to gauge the strength of the economy after a $787 billion stimulus bill passed in February.
Earnings Watch
Goldman Sachs, JPMorgan Chase & Co., International Business Machines Corp. and Google Inc. are among more than 30 companies in the S&P 500 Index scheduled to report results this week. Analysts estimate the group's profits fell an average 35 percent in the second quarter and will decrease 21 percent from July through September, according to data compiled by Bloomberg.
"It's going to be a while before we're confident we're going to have a strong, sustainable recovery in place," Treasury Secretary Timothy Geithner said, according to the transcript of an interview with "CNN's Fareed Zakaria GPS" show broadcast yesterday.
Goldman Sachs climbed 3.2 percent to $146.43. Whitney, founder of Meredith Whitney Advisory Group, upgraded the shares to "buy," her first such rating on a U.S. bank since she started the firm.
Goldman Sachs may post the largest profit since it set earnings records in 2007 when it reports earnings on July 14. The company will probably say it earned $2.2 billion, or $3.65 a share, excluding some items in the three months through June, according to the average estimate of analysts surveyed by Bloomberg. The stock may reach $186 from $141.87 on July 10, Whitney said in a note to clients.
'All Eyes' on Goldman
"People are questioning the strength of the recovery and whether there is need for a second stimulus package," said Alberto Espelosin, who helps manage the equivalent of $10.5 billion at Zaragoza, Spain-based Ibercaja Gestion. "All eyes will be on Goldman's earning's tomorrow."
Best Buy Co., the world's largest electronics retailer, rose 2.8 percent to $33.70. The shares were raised to "outperform" from "perform" at Oppenheimer & Co., which said market "sentiment toward Best Buy has turned decidedly negative lately." The shares have dropped 13 percent since April.
Bets against the S&P 500 rose to the highest since April last month as investors shorted more shares of health-care, technology and financial companies, according to data compiled by U.S. exchanges and Bloomberg last week.
CIT Slides
CIT Group Inc. lost 20 percent to $1.22. The century-old lender that hasn't been able to persuade the government to back its debt sales, says its demise would put 760 manufacturing clients at risk of failure and "precipitate a crisis" for as many as 300,000 retailers.
CapitalSource Inc. fell 2.3 percent to $4.39. The loan provider to small and mid-sized businesses said it plans a public offering of about 17.5 million shares of its common stock.
To contact the reporter on this story: Whitney Kisling in New York at wkisling@bloomberg.net .
No comments:
Post a Comment