U.S. Stocks Rise

U.S. stocks rose, paring the steepest monthly tumble in 21 years, after bank lending rates declined and profits topped analysts’ forecasts at Express Scripts Inc. and Wynn Resorts Ltd.

Morgan Stanley and JPMorgan Chase & Co. climbed more than 5 percent after the cost of borrowing dollars for three months fell. Medco Health Solutions Inc., the biggest U.S. manager of pharmacy benefits, rallied more than 7 percent after Express Scripts, the second-largest, boosted its 2008 earnings projection. Wynn Resorts, the biggest U.S. casino company, rose 6.8 percent after increased gambling in Macau boosted profit.

The Standard & Poor’s 500 Index advanced 10.77, or 1.1 percent, to 964.86 as of 11:31 a.m. in New York. The Dow Jones Industrial Average added 102.34, or 1.1 percent, to 9,283.03. The Nasdaq Composite Index jumped 14.32, or 0.8 percent, to 1,712.84.

The S&P 500, down 35 percent in 2008, has failed to rise on consecutive days for five weeks, the longest period since 2001. Financial stocks led today’s advance after losing 49 percent this year following almost $700 billion of writedowns related to subprime mortgages.

Canadian stocks fell, led by commodity and finance shares, after oil and bullion prices declined and Goldcorp Inc. reported profit that missed analyst estimates.  The Standard & Poor's/TSX Composite Index fell 1.9 percent to 9,667.17 at 9:55 a.m. in Toronto.

Brazilian stocks fell for the first time in four days after banks and retailers missed analysts' profit estimates and commodity producers dropped on the prospect of a recession curbing demand for raw materials. The Bovespa fell 3.7 percent to 36,051.35 at 9:34 a.m. New York time.

Asian stocks fell, adding to the regional benchmark index's worst month ever, as a record three-day rally fizzled after companies slashed profit forecasts and metals prices tumbled. The MSCI Asia Pacific Index retreated 2.1 percent.

Japan's Stocks retreated, capping the Nikkei 225 Stock Average's worst monthly drop on record, as lower company earnings forecasts overshadowed the central bank's first rate cut in seven years. The Nikkei 225 fell 452.78, or 5 percent, to close at 8,576.98 in Tokyo.

Australian stocks rose, paring the biggest monthly loss since 1987, on speculation global interest- rate cuts will spark demand and an economic slowdown in the U.S. will be mild. he S&P/ASX 200 Index rose 16.90, or 0.4 percent, to 4,018 at the close in Sydney, while the broader All Ordinaries Index added 25.40, or 0.6 percent, to 3,982.70.

China's stocks fell, capping the worst month for the Shanghai Composite Index in more than 13 years, after a spate of companies reported lower profit. The CSI 300 Index, which tracks yuan-denominated shares traded in Shanghai and Shenzhen, fell 34, or 2 percent, to 1,663.66 at the close.

TradingEconomics.com, Bloomberg.com
10/31/2008 8:49:14 AM