U.S. Stocks Rebound

U.S. stocks rose and the Standard & Poor’s 500 Index rebounded from an 11-year low as higher commodity prices boosted producers of energy and raw materials.

Exxon Mobil Corp. climbed 2.1 percent and ConocoPhillips added 4.2 percent as oil prices gained for the first time in six days. Newmont Mining Co. and Alcoa Inc. rallied more than 7 percent on higher prices for industrial metals. Citigroup Inc. tumbled 16 percent and benchmark indexes pared gains after Chief Executive Officer Vikram Pandit said he has no plan to break up the company following a stock market rout that erased more than 83 percent of the bank’s value this year.

The S&P 500 gained 1.4 percent to 763.3 at 10:10 a.m. in New York, paring losses in its second-worst week since 1987. The Dow Jones Industrial Average added 92.63 points, or 1.2 percent, to 7,644.92, while the Nasdaq Composite Index rose 1.6 percent to 1,337.71.

European stocks retreated, extending this week's decline, after U.S. lawmakers postponed a vote on a plan to salvage the auto industry and Goldman Sachs Group Inc. said the world's largest economy is in a deeper recession than it previously forecast.

Europe's Dow Jones Stoxx 600 Index fell 1.4 percent to 184.06 as of 3:05 p.m. in London, leaving the index down 10 percent this week. National benchmark indexes slipped in 11 of the 18 western European markets. The U.K.'s FTSE 100 lost 1.4 percent. Germany's DAX slid 1.3 percent. France's CAC 40 sank 1.9 percent.

Japan stocks rose, reversing a morning drop and paring a weekly decline, after investors pounced on shares trading near the lowest in almost three decades and a newspaper reported Citigroup Inc. may be sold. The Nikkei 225 climbed 207.75, or 2.7 percent, to close at 7,910.79 in Tokyo, reversing a 3.9 percent tumble in the morning session that brought the gauge within 243 points from the lowest close since 1982.

Australia's benchmark stock index rebounded from a five-year low, led by financial and resources companies. The S&P/ASX 200 index added 1.9 percent to 3,416.50 after earlier plummeting to the lowest since December 2003 as global markets slumped on reports showing the U.S. economy is worsening. The index, which declined 8.9 percent this week, has lost 50 percent since its Nov. 1, 2007 record high.

China stocks fell, sending the benchmark CSI 300 Index to a weekly loss, on concern a deepening global recession will stifle profits. The benchmark CSI 300 sank 11.69, or 0.6 percent, to 1,920.73 at the close, capping a 1.2 percent loss for the week.

Indian stocks gained, ending a seven- day, 20 percent decline in the benchmark Sensitive index, as some investors judged recent declines excessive. The Bombay Stock Exchange Sensitive Index, or Sensex, gained 464.20, or 5.5 percent, to 8,915.21. The index posted its second weekly decline, falling 5 percent.

TradingEconomics.com, Bloomberg.com
11/21/2008 7:22:23 AM