U.S. stocks on Thursday climbed for a third consecutive day, with financials leading the surge after MasterCard Inc. predicted robust revenue growth and shareholders approved a $2.2 billion buyout of Bear Stearns Cos (NYSE:BSC) .
Investor sentiment was also bolstered by crude oil's dip below $130 a barrel.
"It was good news all around with financials rallying - in general that's positive in light of the weakness seen in that group this past week," said Owen Fitzpatrick, head of the U.S. equity group at Deutsche Bank.
Up about 130 points earlier on, the Dow Jones Industrial Average (DJI) ended at 12,646.22, up 52.19 points, or 0.4%.
Of the Dow's 30 components, all but six were trading in the green, led by Johnson & Johnson (NYSE:JNJ) (JNJ), up 2.4%, and Citigroup Inc. (NYSE:C) (C), which ended with a gain of 2%.
Intel Corp. (NASDAQ-NMS:INTC) (INTC) fronted the blue-chip declines, off 1.4%.
The S&P 500 (SPX) rose 7.42 points, or 0.5%, to 1,398.26.
Financials led sector gains on the S&P, up 1.8%.
Energy led the two industry groups on the decline, off 2.6%.
Oil futures lost more than $4 a barrel Thursday to close at their lowest level in two weeks, with crude for July delivery touching a high of $132.9 a barrel on the New York Mercantile Exchange, before shedding gains to close at $126.62 a barrel, down $4.41, its weakest closest level in nearly two weeks. .
"With oil down over 3%, the market took its cue and has rallied hard. We are on track to see the second monthly gain in the major indices despite the continued concerns on global inflation," said Brett Hryb, a portfolio manager at MFC Global Investment Management.
The Nasdaq Composite (RIXF) climbed 21.62 points, or 0.9%, to 2,508.32.
On the New York Stock Exchange, volume hit more than 1.2 billion shares, and advancers topped decliners nearly 2 to 1. On the Nasdaq, 838 million issues were exchanged, and advancing stocks overtook decliners 8 to 5.
Active issues
Bear Stearns (NYSE:BSC) (BSC) gained 1.8% 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 8.2% 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 3.6% after reporting a surprise loss, while shares of Costco Wholesale Corp. (NASDAQ-NMS:COST) (COST) edged lower 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 1638 Copyright (c) 2008 Dow Jones & Company, Inc.
