By Rita Nazareth and Elizabeth Stanton
Jan. 12 (Bloomberg) -- U.S. stocks rose, sending benchmark indexes higher for a second day, as Well Fargo & Co. raised its rating for large banks on speculation Europe will step up measures to control its debt crisis and lenders will boost dividends.
Bank of America Corp. and Citigroup Inc. gained at least 1 percent. JPMorgan Chase & Co. added 1.7 percent after Chief Executive Officer Jamie Dimon told CNBC that he ?would like? to boost the company?s dividend. Symantec Corp. climbed 4.1 percent after Citigroup Inc. recommended buying the world?s largest maker of computer security software.
The Standard & Poor?s 500 Index rose 0.6 percent to 1,281.51 at 9:33 a.m. in New York. The Dow Jones Industrial Average increased 59.60 points, or 0.5 percent, to 11,731.48.
?States are intervening to keep risk premiums in check and to prevent the weak economic rebound from faltering,? said Alberto Espelosin, who helps manage about $12 billion at Zaragoza, Spain-based Ibercaja Gestion. ?States are printing money that either we?ll have to pay for at one point, or that will generate inflation.?
The S&P 500 yesterday climbed 0.4 percent, approaching the highest level since September 2008, after Sears Holdings Corp.?s profit forecast and Lennar Corp.?s earnings beat estimates. The benchmark gauge had fallen for the previous three days amid concern that Europe?s sovereign debt crisis will worsen.
Bond Sale
Portugal?s borrowing costs fell at a sale of 10-year bonds, indicating investor concern is diminishing about the country?s need to follow Greece and Ireland in seeking a bailout. The nation sold 599 million euros ($778 million) of bonds maturing in June 2020 at an average yield of 6.716 percent, compared with a yield of 6.806 percent at a sale on Nov. 10.
Spain and Italy are also scheduled to sell debt this week. The auctions are likely to prove successful, boosting investor confidence, Societe Generale SA wrote in a report to clients.
Separately, Japanese officials said the country may extend its purchases of bonds sold by a European financial aid fund beyond January as it seeks to support the region.
U.S. banks gained following an advance in European financial institutions. The biggest American lenders also advanced as Wells Fargo raised its rating to ?overweight? from ?market weight,? saying dividend payout ratios may double this year.
Bank of America rose 1.4 percent to $14.90, while Citigroup advanced 1 percent to $4.99.
Dividends
JPMorgan rose 1.7 percent to $44.35. CEO Dimon told CNBC that he ?would like? to boost the company?s dividend. He didn?t give a timetable, although he said he hoped the action could be taken in the second quarter. He did not specify an amount.
Goldman Sachs Group Inc. gained 0.2 percent to $169.75. The most profitable securities firm in Wall Street history was cut to ?neutral? from ?overweight? by JPMorgan.
Stocks held gains after Labor Department figures showed the price of goods imported into the U.S. climbed 1.1 percent in December, compared with a 1.5 percent increase in November.
The Federal Reserve is also scheduled to release its report on regional economic activity, known as the Beige Book, at about 2 p.m. in Washington.
Companies in the S&P 500 posted higher-than-estimated results in all three quarters reported so far for 2010, and analysts predict they?ll climb 14 percent in 2011, according to Bloomberg data. Intel Corp., M&T Bank Corp and JPMorgan are among S&P 500 companies scheduled to report fourth-quarter results this week.
Symantec
Symantec gained 4.1 percent to $17.79. The world?s largest maker of computer security software was raised to ?buy? from ?hold? at Citigroup.
Noble Corp. advanced 5.4 percent to $37.87. The U.S. offshore oil driller was picked to replace QLogic Corp. in the S&P 500, according to a statement on S&P?s website.
General Electric Co. slid 0.3 percent to $18.57. The world?s biggest maker of jet engines, medical-imaging equipment and power turbines was cut to ?market perform? from ?outperform? at Sanford C. Bernstein & Co.
Arch Coal Inc. slumped 1.8 percent to $34.89. The second- biggest U.S. coal company said its 2010 earnings excluding some items were $1.15 a share at most, trailing its earlier forecast, because of lower shipments.
--With assistance from Sarah Jones and Alexis Xydias in London. Editors: Joanna Ossinger, Michael P. Regan
To contact the reporters on this story: Rita Nazareth in New York at rnazareth@bloomberg.net; Elizabeth Stanton in New York at estanton@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.
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