U.S. stocks on Thursday climbed for a third consecutive day, with blue chips up more than 100 points and financials leading the surge, as MasterCard Inc. predicted robust revenue growth and Bear Stearns Cos (NYSE:BSC) . shareholders approved a $2.2 billion buyout of the investment bank.
Investor sentiment was also bolstered by crude oil's dip below $130 a barrel.
The Dow Jones Industrial Average (DJI) gained 117.73 points to 12,711.76, with 26 of its 30 components posting gains, led by J.P. Morgan Chase (NYSE:JPM) (JPM), up 2.1%, and Citigroup Inc. (NYSE:C) (C), up 2.2%.
Intel Corp. (NASDAQ-NMS:INTC) (INTC) fronted the blue-chip declines, off 1.5%.
The S&P 500 (SPX) rose 13.36 points to 1,404.2.
Financial shares led sector gains on the S&P, up 2%, followed by health care, up 1.8%, and telecommunications, recently ahead 1.4%.
Energy led the two industry groups on the decline, off 1.4%.
The Nasdaq Composite (RIXF) climbed 31.42 points higher to 2,518.12.
Oil futures also saw volatile action, briefly jumping higher after the Energy Department reported supplies of crude fell by 8.8 million barrels to 311.6 million last week. More recently, crude-oil futures slipped $4.34 to $126.69 a barrel. .
On the New York Stock Exchange, volume hit 599 million shares, and advancers topped decliners more than 2 to 1. On the Nasdaq, 428 million issues were exchanged, and advancing stocks overtook decliners by about 2 to 1.
Active issues
Bear Stearns (NYSE:BSC) (BSC) gained 2.1% in the wake of a 15-minute meeting that effectively ended an 85-year run of what had been the world's fifth-largest investment bank.
Shares of Countrywide Financial Corp. (NYSE:CFC) (CFC) rose 9.6% after the lender set a June 25 date for a shareholders meeting to approve its sale to Bank of America Corp. (NYSE:BAC) (BAC). .
Retail reports were mixed: Sears Holdings (NASDAQ-NMS:SHLD) (SHLD) shares dropped 3% after reporting a surprise loss, while shares of Costco Wholesale Corp. (NASDAQ-NMS:COST) (COST) edged higher after the warehouse retailer reported stronger-than-expected results.
On the deal-making front, Bristol-Myers Squibb Co. (NYSE:BMY) (BMY) said it would buy Kosan Biosciences Inc. (NASDAQ-NMS:KOSN) (KOSN) in a transaction valued at about $190 million.
In other M&A activity, Trump Entertainment Resorts Inc. (NASDAQ-NMS:TRMP) (DJTE) said it would sell Trump Marina Hotel Casino in Atlantic City to Coastal Marina LLC for $316 million.
In line with expectations, the Commerce Department revised its reading of first-quarter gross domestic product to an annual rate of 0.9%, above its previous estimate of 0.6%.
"As long as the number holds above 0.5% we are still skirting [with] the term 'recession.' Stronger would obviously be better," said Marc Pado, U.S. market strategist at Cantor Fitzgerald, who cited better inventory numbers and improved exports for the upward revision.
In a separate report, the Labor Department said unemployment claims rose 4,000 to 372,000, a bit more than forecast. .
(END) Dow Jones Newswires 05-29-08 1313 Copyright (c) 2008 Dow Jones & Company, Inc.
