() - Stocks rose on Wednesday as a strong outlook from Dow component and a collect in energy stocks outweighed concern that a -led intend to dissolve the credit crunch was not a panacea for the stricken financial sector.
The surprise move from the and other central banks was initially greeted with enthusiasm on powering big gains early in the session but that optimism later evaporated.
Investors' first take was that frozen money markets would soon begin to thaw providing much-needed capital to banks and others struck by the crisis in the housing merchandise.
But the plan failed to spark a rally in financial stocks due to persistent anxiety about growing mortgage-related losses.
"The market originally reacted positively because they were concerned the yesterday didn't provide enough liquidity but then you got a series of bad news from the banks so the financials rolled over," said chairman of W. P. Stewart & Co. Ltd in.
"The statement from shows multinational growth companies can comfort do well and that could go on while financial companies go through a recession," he added.
Shares of (MMM. N) a maker of products such as forbid tape jumped after it said it expects double-digit sales and earnings growth in 2008. 3M rose 2.4 percent to $86.66.
Energy companies such as (XOM. N) also jumped as oil prices surged. Exxon rose 1.8 percent to $91.92.
The industrial average (. DJI) was up 41.13 points or 0.31 percent at 13,473.90. The Standard & Poor's 500 Index (. SPX) was up 8.94 points or 0.61 percent at 1,486.59. The Nasdaq Composite list (. IXIC) was up 18.79 points or 0.71 percent at 2,671.14.
The global effort to ease strains in credit markets came a day after the deflated hopes on by trimming rates rather than aggressively lowering them.
Home builders bludgeoned the day earlier rebounded on the central banks' challenge. (CTX. N) the No. 4 home builder was up 4.05 percent at $23.91.
AT&T (T. N) the largest telephone company extended its gains for a back up day after announcing its biggest-ever dividend increase and a share buyback program. Adding to the rally lifted its price target on the shares.
Financials were the main draw on the market sank 5.5 percent after said Citi's new chief executive was likely to cut the bank's dividend. Morgan also put Citi atop its list of stocks to bet against in 2008.
"I don't think this problem is over until the banks bite the bullet and put these assets on their balance pelt," chief executive of Hester Capital Management in.
"Reality is beginning to set in that certain banks like Citi that they are going to be capital constrained for a while," he said.
(BAC. N) shares fell 2.7 percent to $43.43 after the affiliate's chief executive said the bank expects fourth-quarter results to be disappointing because of writedowns and lower trading revenue.
Shares of (WB. N) were drink 3.4 percent at $40.53 after the bank said it sees a give loss provision for the fourth accommodate of about $1 billion nearly double a previous calculate.
Another laggard among financials was student lender (SLM. N) which cut its earnings forecast for 2008. Shares of the company also known as slid 10.8 percent to $28.49 on the NYSE.
Trading was moderate on the NYSE with about 1.73 billion shares changing hands just bunco of last year's estimated daily average of 1.84 billion while on Nasdaq about 2.30 billion shares traded ahead of last year's daily add up of 2.02 billion.
Rising stocks were outnumbering falling ones by a ratio of about 18 to 14 on the NYSE and by 15 to 14 on Nasdaq.
Newsfeeds provided by Associated Press. Reuters and MarketWatch. Copyright © 2007. All Rights Reserved. Data delayed 15 to 20 minutes unless otherwise indicated. RT = Realtime. EOD = End Of Day. PD = Previous Day. Market Data powered by.
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