U.S. stocks rose, helping the Standard & Poor’s 500 Index rebound from its worst week since March, as analysts recommended Bank of America Corp. and Lowe’s Cos. beat earnings projections. Oil climbed about $58 a barrel, while Treasuries fell.
Bank of America gained 11 percent after Citigroup Inc. said it may have sold $4 billion in shares and Goldman Sachs Group Inc. put the lender on its “conviction buy” list. Financial stocks led the advance after the cost of borrowing in dollars between banks dropped the most in two months as credit markets thaw. Lowe’s, the home-improvement retailer, added 8.8 percent.
“It’s a more constructive market” for stocks, said Hank Smith, who helps oversee $5 billion as chief investment officer of Haverford Trust Co. in Radnor, Pennsylvania. “What we saw last week was only a necessary pause, not the beginning of a retracement. The worst of the economy is behind us and it’s hard to see earnings getting any worse from here.”
Source: Bloomberg.com
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