U.S. Stocks Fell

Most U.S. stocks fell a day after the market's biggest rally since the 1930s as a worsening outlook for earnings forced investors to look beyond a $2 trillion global push to rescue banks.

Almost two stocks fell for each that rose on the New York Stock Exchange. The Standard & Poor's 500 Index slipped 0.23 point to 1,003.12 at 3:48 p.m. in New York. The Dow Jones Industrial Average decreased 43.65, or 0.5 percent, to 9,343.96 after a 936-point rally yesterday. The Nasdaq Composite decreased 47.32, or 2.6 percent, to 1,796.93.

Canadian stocks surged, sending the main index to the biggest gain in 33 years, after the U.S. announced plans to invest $250 billion in banks in an effort to avert a global recession. The Standard & Poor's/TSX Composite Index jumped 9.5 percent to 9,930.18 at 3:51 p.m. in Toronto.

Brazilian stocks rallied for a second day, extending their biggest gains this decade, as a jump in commodity prices and the U.S. injection of $250 billion in banks eased concern that credit seizures will stall growth. The Bovespa rose 453.65 or 1.1 percent, to 41,282.78 at 3:51 p.m. New York time. The index gained 15 percent yesterday, the steepest advance since 1999.

European stocks climbed, sending the Dow Jones Stoxx 600 Index to its biggest two-day gain on record, as the U.S. planned to inject $250 billion in banks and urged the lenders to use the funds to spur economic growth.

The Stoxx 600 added 3 percent to 232.21, bringing its two- day advance to 13 percent, the most since records began in 1987. The U.S. investment in banks came after France, Germany, Spain, the Netherlands and Austria pledged 1.3 trillion euros ($1.8 trillion) to guarantee bank loans and take stakes in lenders.

National benchmark indexes advanced in all 18 western European markets except Belgium, Iceland and the Netherlands. The U.K.'s FTSE 100 climbed 3.2 percent as BP Plc and Royal Dutch Shell Plc gained. France's CAC 40 jumped 2.8 percent, led by Total SA. Germany's DAX rallied 2.7 percent.

Japanese stocks rallied, driving the Nikkei 225 Stock Average to its biggest gain on record, as U.S. and European government plans to buy bank stakes boosted confidence that global financial markets will avoid collapse. The Nikkei climbed 14.2 percent, rebounding from the worst week in its 59-year history.

Australian stocks gained for a second day, led by banks, energy and resources companies, on speculation U.S. measures to rescue the financial system will help revive the global economy. Australia's benchmark S&P/ASX 200 Index jumped 3.7 percent to 4,335.20 at the close in Sydney today, extending yesterday's 5.6 percent advance.

Indian stocks rose, with the benchmark index climbing to its highest in a week, after U.S. and European governments agreed to buy stakes in their banks to re- energize credit markets and avert recession.  The Bombay Stock Exchange's Sensitive Index, or Sensex, rose 174.31, or 1.5 percent, to 11,483.40, extending yesterday's 7.4 percent advance.

China's stocks fell, with the benchmark index reversing gains in the last half hour of trading, led by steelmakers and brokerages on signs of slowing earnings. The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, retreated 2.6 percent to 1,934.62 at the close, erasing an earlier gain of as much as 3.8 percent.

Russian stocks surged, led by banks OAO Sberbank and VTB Group, as U.S. and European governments agreed to buy stakes in banks to avert a collapse in financial markets and bolster economic growth. The ruble-denominated Micex Index jumped 11 percent to 741.14, trimming its loss this year to 61 percent.

TradingEconomics.com, Bloomberg.com
10/14/2008 1:05:00 PM