U.S. Stocks Rallied


U.S. stocks rallied and the Standard & Poor’s 500 Index rebounded from an 11-year low after President-elect Barack Obama picked New York Federal Reserve Bank chief Timothy Geithner to head the Treasury.

Citigroup Inc. pared a 35 percent slide and JPMorgan Chase & Co. trimmed a 16 percent tumble in the final hour as a Democratic aide said Obama will name Geithner to replace Henry Paulson. National-Oilwell Varco Inc. and Chesapeake Energy jumped more than 20 percent as oil rose for the first time in six days. The rally came after this week’s rout dragged the S&P 500’s price-to-earnings valuation to the cheapest since 1995.

The S&P 500, which capped a third-straight weekly decline, gained 6.3 percent to 800.01. The Dow Jones Industrial Average rose 494.37 points, or 6.6 percent, to 8,046.66, while the Nasdaq Composite Index added 5.2 percent to 1,384.35. Almost five stocks gained for each that fell on the New York Stock Exchange.

European stocks fell, extending the Dow Jones Stoxx 600 Index's 2008 decline to 50 percent, after Goldman Sachs Group Inc. said the U.S. is in a deeper recession than it previously forecast and concern grew about the health of Citigroup Inc.

Europe's Stoxx 600 fell 2.5 percent to 182.13, the lowest level since April 2003. National benchmark indexes slipped in 15 of the 18 western European markets. The U.K.'s FTSE 100 lost 2.4 percent. Germany's DAX slid 2.2 percent. France's CAC 40 sank 3.3 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
11/21/2008 1:17:16 PM