U.S. Stocks Advance

U.S. stocks rose, capping the biggest weekly gain since 1974, after JPMorgan Chase & Co. took steps to end the housing crisis, bank lending rates declined and earnings from companies outside the financial industry expanded four times faster than the previous quarter.

JPMorgan added 9.7 percent after saying it will modify terms on $110 billion of mortgages and delay foreclosures. Morgan Stanley climbed 8.6 percent after the cost of borrowing dollars for three months fell. Wynn Resorts Ltd., the biggest U.S. casino company, soared 30 percent after increased gambling in Macau boosted profit.

The Standard & Poor's 500 Index advanced 1.5 percent to 968.75, rallying on consecutive days for the first time in five weeks. The Dow Jones Industrial Average added 1.6 percent to 9,325.01. The MSCI World Index of 23 developed markets rose 0.6 percent.

Canadian stocks fell, capping their worst monthly slide in a decade, as commodity and finance companies dropped on lower gold and oil prices and concern that profits will be hurt by a recession. The Standard & Poor's/TSX Composite Index fell 1 percent to 9,762.76 in Toronto.

European stocks rose, trimming the Dow Jones Stoxx 600 Index's worst monthly slump since September 2002, as the regional gauge traded near the cheapest in at least six years and lower oil pushed retailers and travel-related companies higher.

The Dow Jones Stoxx 600 Index climbed 2.7 percent 222.06 in London, leaving the gauge down 13 percent in October. The index traded at 8.8 times reported earnings of its companies yesterday, close to the lowest since at least January 2002.

National benchmark indexes rose in 17 of the 18 western European markets. The U.K.'s FTSE 100 advanced 2 percent, while France's CAC 40 gained 2.3 percent. Germany's DAX rallied 2.4 percent.

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 1:56:57 PM