Stock market rallies in anticipation of stimulus package
new york — Stocks gained Friday, sending the Dow Jones industrial average to its best two-day rally in a month, on speculation that the highest unemployment rate since 1992 will force Congress to pass an economic stimulus package.
Bank of America Corp. jumped 27 percent to lead gains in 29 of 30 Dow stocks after saying it doesn’t need more government aid. Citigroup Inc. and JPMorgan Chase & Co. added at least 10.7 percent on speculation that a bank rescue to be detailed next week won’t wipe out shareholders.
All 10 industry groups in the Standard & Poor’s 500 index rose as Labor Department data showing the nation lost 598,000 jobs last month bolstered expectations lawmakers will agree on a plan to combat the recession.
The S&P 500 rose 2.7 percent to 868.60. The Dow added 217.52 points, or 2.7 percent, to 8,280.59, capping a 4.1 percent two-day gain. The Nasdaq composite index climbed 2.9 percent, erasing its 2009 loss. The S&P 500 gained 5.2 percent over the last five days.
Bank of America rallied $1.29 to $6.13 to pare its year-to-date slide to 56 percent. CEO Kenneth Lewis told CNBC that nationalization of the bank wasn’t even a "remote possibility cash advance to savings account."
Citigroup added 11 percent to $3.91. JPMorgan jumped 13 percent to $27.63.
Regional banks including Fifth Third Bancorp, Regions Financial Corp., Marshall & Ilsley Corp. and Huntington Bancshares Inc. were among the biggest gainers in the S&P 500.
Fifth Third, Ohio’s second-largest bank, rallied 60 percent to $2.63. Regions Financial, Alabama’s biggest bank, advanced 48 percent to $4.20. Marshall & Ilsley, Wisconsin’s largest bank, gained 39 percent to $5.31. Huntington, Ohio’s third-largest, climbed 32 percent to $2.36.
Hartford Financial Services Group Inc. bucked the trend, falling 16 percent to $12.68 after reporting a loss and cutting its dividend.
General Electric Co. rose 2.3 percent to $11.10.
Apartment Investment & Management Co. dropped 6.2 percent to $7.25.