Most U.S. Stocks Rise; Wal-Mart Stores, MBIA Shares Advance

Fuente: Bloomberg

Most U.S. stocks gained, rebounding from the first weekly drop in a month, as a retreat in oil prices boosted consumer shares and the world's largest bond insurer said it has enough cash to cover the securities it guarantees.

Wal-Mart Stores Inc., the world's biggest retailer, climbed the most in two weeks as the stronger dollar reduced oil's appeal as a currency hedge. MBIA Inc., which reported its third consecutive quarterly loss, advanced for the first time in four days after saying it has ``ample liquidity'' and won't have to raise more money. Exxon Mobil Corp. and Chevron Corp. led energy shares lower, limiting the market's advance.

Nine stocks rose for every eight that fell on the New York Stock Exchange. The Standard & Poor's 500 Index added 0.57, or less than 0.1 percent, to 1,388.85 at 10 a.m. in New York. The Dow Jones Industrial Average increased 22.14, or 0.2 percent, to 12,768.02. The Nasdaq Composite Index advanced 4.34, or 0.2 percent, to 2,449.86.

``If oil prices come down and gasoline prices at the pump come down, that's a big benefit to the consumer,'' said Kevin Rendino, a senior fund manager who helps oversee about $16 billion at BlackRock Inc. in Plainsboro, New Jersey. ``We're getting more positive on financials.''

Eight of 10 industry groups in the S&P 500 advanced today, trimming its 2008 loss to 5.3 percent. The benchmark for U.S. equities has rebounded 9 percent from a 19-month low on March 10 as first-quarter earnings topped analysts' estimates at 61 percent of companies that have reported results so far, according to data compiled by Bloomberg.

Oil's Retreat

Crude oil for June delivery fell 1.2 percent to $124.45 a barrel in New York today as the dollar rose against the euro and speculation increased that a doubling of prices over the past year will reduce demand in emerging markets. Gasoline futures dropped 0.6 percent.

Wal-Mart, which relies on consumers' disposable income, climbed 66 cents to $57.84. Citigroup raised its share-price forecast to $67 from $57, citing the potential for increased earnings at its overseas stores. The retailer reports first- quarter earnings tomorrow.

``We're coming into the end of an earnings season which was OK,'' said Jonathan Monk, a U.S.-stock fund manager at Aerion Fund Management in London, which oversees about $23 billion. ``Oil prices coming down helps.''

Airlines also rallied as fuel costs declined. Continental Airlines Inc., the fourth-biggest U.S. carrier, gained 47 cents to $17.85. Northwest Airlines Corp., the fifth-largest, increased 37 cents to $8.98.

Banks Gain

Bank of America, the second-biggest U.S. bank by assets, rose 37 cents to $37.02. JPMorgan, the third-largest, climbed 46 cents to $47.03. HSBC set aside $3.2 billion for bad loans in the U.S. Three analysts surveyed by Bloomberg predicted the first- quarter loan loss would range from $4.2 billion to $4.8 billion.

MBIA Inc. gained 71 cents to $10.14. The company will give $900 million of capital to its insurance unit after regulators expressed concern over the bond insurer's decision to keep the money at the parent company.

Apple Inc. advanced $1.65 to $185.10. The maker of Macintosh computers had its share-price target raised 14 percent to $205 at BMO Capital Markets, which said new phones and an expanding share of the personal computer market may boost earnings.

Research In Motion climbed $4.20 to $136.97. The company introduced a BlackBerry phone with quicker Web browsing and more room for songs and videos, getting a jump on Apple's faster iPhone that analysts expect next month.

AnnTaylor Jumps

AnnTaylor Stores Corp. added $2.31 to $26.86. The clothing retailer that targets women age 25 to 55 said it expects first- quarter earnings per share will exceed a previous forecast because of expense reductions and ``stronger results'' at its Loft stores.

Cablevision Systems Corp. dropped 16 cents to $24.81. The New York-area cable provider agreed to buy 97 percent of Long Island's Newsday newspaper from Tribune Co. for $650 million.

El Paso Corp., owner of the largest U.S. network of natural- gas pipelines, gained 30 cents to $19.53 after JPMorgan Chase & Co. upgraded the stock to ``overweight'' from ``neutral.''

Sprint Nextel Corp. gained 37 cents to $9.75. The wireless company reported first-quarter profit excluding some items of 4 cents a share, topping the 2-cent average of analysts compiled by Bloomberg. Sales fell 7.5 percent to $9.33 billion, compared with the $9.39 billion average estimate of analysts. Sprint said it's exploring whether to get rid of ``non-core'' assets.

Sovereign Bancorp

Sovereign Bancorp Inc. added 3 cents to $7.89 after the second-biggest U.S. savings and loan said it plans to raise about $1.5 billion in capital as the company tries to rebound from losses in 2007.

FedEx Corp., the second-largest U.S. package-shipping company, fell $1.58 to $88.79 after saying fourth-quarter profit will trail its forecast. Earnings will be $1.45 to $1.50 a share in the quarter ending May 31, compared with a previous target of $1.60 to $1.80, as surging fuel prices raised costs by at least $100 million more than estimated.

United Parcel Service Inc., which delivers half of U.S. packages, lost 15 cents to $70.14.

U.S. stocks completed their first weekly drop in a month May 9 after American International Group Inc. said it needs to raise $12.5 billion to cover writedowns.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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