US STOCKS-Dow, S&P snap back after Spain scare, banks up

* Dow, S&P cover despite cut in Spain’s debt rating

* IMF sees Greek aid worth 100 bln euros-German officials

* Investors await Fed statement on rates, economy

* Dow up 0.3 pct, S&P up 0.4 pct, Nasdaq down 0.2 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to early afternoon)

By Rodrigo Campos

NEW YORK, April 28 (BestGrowthStock) – The Dow and the S&P 500
recovered after a sharp selloff on Wednesday, sparked by a
credit downgrade of Spain, as investors scooped up beaten-down
shares of financial companies.

Investors were jittery and indexes volatile ahead of
Federal Reserve comments at the end of a two-day policy
meeting. The Fed’s post-meeting statement is due about 2:15
p.m. (1815 GMT).

Standard & Poor’s cut its key rating on Spain by one notch,
citing a more protracted period of sluggish growth than
previously expected. Worries about some euro zone nations’
fiscal health have weighed on global markets for months.

But U.S. bank shares rose, lifting the S&P 500, with
JPMorgan & Co (JPM.N: ) up 2.3 percent to $43.37, while the KBW
bank index (.BKX: ) added 1.3 percent. The financial sector
rebounded after a steep selloff on Tuesday that followed rating
downgrades of Portugal and Greece.

Earnings season stayed in high gear, with Dow Chemical Co
(DOW.N: ) up 5.2 percent to $31.64 after reporting a profit that
beat expectations. For details see [ID:nN28164681].

“Fundamentals are pretty strong, earnings should continue
to surprise to the upside and investors are catching their
breath, realizing policymakers will ultimately do the right
thing for Greece,” said Paul Zemsky, head of asset allocation
at ING in New York.

The Dow Jones industrial average (.DJI: ) gained 54.56
points, or 0.50 percent, to 11,046.55. The Standard & Poor’s
500 Index (.SPX: ) rose 7.53 points, or 0.64 percent, to
1,191.24. The Nasdaq Composite Index (.IXIC: ) dropped 1.25
points, or 0.05 percent, to 2,470.22.

About seven stocks rose for every five that fell on the New
York Stock Exchange, while on the Nasdaq seven stocks advanced
for every six that fell.

International Monetary Fund Managing Director Dominique
Strauss-Kahn estimated a Greek aid package at 100 billion to
120 billion euros ($133 billion to $160 billion), according to
German officials. The news partly eased concern over sovereign
debt problems, but Spain’s downgrade revived worries of
contagion. [ID:nLDE63R1U1]

Investors awaited comments from the Federal Reserve Open
Market Committee, which is expected to hold interest rates near
zero and repeat its vow of keeping rates very low for an
extended period. [ID:nN2298630]

Comcast Corp (CMCSA.O: ), up 2 percent to $18.82, helped buoy
the Nasdaq after the No. 1 U.S. cable operator posted slightly
better than expected quarterly profit. [ID:nN28157276].

Apple Inc (Read more about Apple stock future.) (AAPL.O: ) and Inc (AMZN.O: ) weighed
Nasdaq, with Apple off 0.4 percent to $260.92 and Amazon down
1.5 percent to $139.88.

Investment Analysis

(Editing by Kenneth Barry)

US STOCKS-Dow, S&P snap back after Spain scare, banks up