
Bank of America Corp. and Citigroup Inc. gained at least 2 percent. JPMorgan Chase & Co. added 2.6 percent after Chief Executive Officer Jamie Dimon told CNBC that he would like to boost the company’s dividend. Canada’s Consolidated Thompson Iron Mines Ltd. soared 33 percent after Cliffs Natural Resources Inc. agreed to buy the company for about C$4.9 billion ($4.95 billion). Nvidia Corp. jumped 15 percent after Oppenheimer & Co. predicted a “good year” for the industry’s earnings.
The Standard & Poor’s 500 Index rose 0.9 percent to 1,285.96 at 4 p.m. in New York, the highest since Aug. 28, 2008. The Dow Jones Industrial Average increased 83.56 points, or 0.7 percent, to 11,755.44.
“Bank dividends and M&A activity signal the economy is transitioning from recovery to expansion,” said Philip Dow, director of equity strategy at Minneapolis-based RBC Wealth Management, which oversees $164 billion. “Companies are sitting on tons of cash. Corporate earnings are coming in very strong. I see a gain of 10 percent to 15 percent for stocks in 2011.”
The S&P 500, which rose for a second day, has soared 90 percent from its March 2009 low amid government measures to stimulate the economy and as corporate profits exceeded forecasts. Companies in the benchmark gauge posted higher-than- estimated results in all three quarters reported so far for 2010, and analysts predict profit will increase 14 percent in 2011, according to data compiled by Bloomberg News. more ...
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