REFILE-US STOCKS-Wall St gains as banks, home builders rally

(Refiles to rephrase paragraph 3)

* Banks up after Europe news, Goldman Sachs upgrade

* Home builders gain after pending home sales data

* Dow up 0.9 pct, S&P up 1.1 pct, Nasdaq up 1 pct

* for up-to-the-minute market news see [STXNEWS/US]
(Updates to midday; changes byline)

By Angela Moon

NEW YORK, Dec 2 (BestGrowthStock) – Wall Street rose on Thursday,
led by banks and home builders after European lenders decided
to continue a liquidity safety net for vulnerable banks and
pending home sales data showed an unexpected jump in October.

The KBW bank index (.BKX: ) shot up 2.9 percent, the biggest
one-day gain in a month. The S&P 500 financial index (.GSPF: )
rose 2.2 percent, making it the largest gainer among S&P

The stock market was reassured by the European Central
Bank’s commitment that its liquidity safety net for vulnerable
euro-zone banks will continue. For details see:

Officials have “basically said we will do what it takes
and while you can never know what a Band-Aid will look like at
any point in time, I think the overall theme is that those
Band-Aids will be found,” said Bob Doll, chief equity
strategist for fundamental equities at BlackRock Inc (BLK.N: ).

Further supporing the financials, Goldman Sachs Group Inc
(GS.N: ) said U.S. banks are on stronger footing due to an
improving economy, higher equity prices and a favorable
interest-rate environment. For details, see [ID:nSGE6B109L]

Shares of regional lender Marshall & Ilsley Corp (MI.N: )
jumped 7.2 percent to $5.23 and Bank of America (BAC.N: ) gained
2.7 percent to $11.59.

Home builders’ stocks also rose as an index of pending
home sales unexpectedly surged in October, hinting the
economic recovery has legs. The Dow Jones U.S. Home
Construction index (.DJUSHB: ) advanced 4.3 percent.

The Dow Jones industrial average (.DJI: ) rose 102.74
points, or 0.91 percent, to 11,358.52. The Standard & Poor’s
500 Index (.SPX: ) advanced 13.29 points, or 1.10 percent, to
1,219.36. The Nasdaq Composite Index (.IXIC: ) gained 24.28
points, or 0.95 percent, to 2,573.71.

Other data showed U.S. retailers reported
higher-than-forecast sales for November, while the four-week
moving average for jobless claims fell to a fresh two-year
low, though new claims rose for the week. [ID:nN02149928]

The Dow and the S&P 500 scored their biggest one-day
percentage gains in three months on Wednesday as optimism
about efforts to resolve the EU’s debt crisis helped push the
S&P above 1,200.

If the S&P 500 continues to hold above that level, the
market uptrend will see strong resistance at 1,225-1,230,
which coincides with a recent two-year high and the 61.8
percent Fibonacci retracement of the benchmark’s slide from
October 2007 to March 2009, a key technical indicator.

In company news, PepsiCo Inc (PEP.N: ) agreed to buy Russian
juice and dairy producer Wimm-Bill-Dann (WBD.N: ). U.S.-traded
shares of Wimm-Bill-Dann surged 27.3 percent to $31.15.
[ID:nLDE6B110R] In contrast, PepsiCo’s stock lost 0.9 percent
to $65.03.
(Reporting by Angela Moon; Additional reporting by Ed Krudy;
Editing by Jan Paschal)

REFILE-US STOCKS-Wall St gains as banks, home builders rally