U.S. Markets Wrap: Most Stocks Rise as Oil, Treasuries Climb By Elizabeth Stanton

June 9 (Bloomberg) -- Most U.S. stocks rose for the first time in three sessions as a better-than-estimated forecast at Texas Instruments Inc. spurred gains in technology companies. The dollar fell against the euro for the first time in three days as gold, oil and Treasury notes rose.

Texas Instruments, the second-largest maker of computer chips, jumped 6.3 percent. American Express Co. led financials higher as the Treasury allowed 10 banks to repay $68 billion of rescue funds. United Technologies Corp., maker of Carrier air conditioners, dropped 1.7 percent to lead the Dow Jones Industrial Average lower. Procter & Gamble Co. fell 1.4 percent after saying the business environment remains challenging.

About four stocks climbed for every three that fell on the New York Stock Exchange. The Standard & Poor’s 500 Index, which has surged 39 percent from a 12-year low in March, added 0.4 percent to 942.43 at 4:10 p.m. in New York. The Dow slipped 1.43 points, or less than 0.1 percent, to 8,763.06, failing to erase its 2009 drop for the fourth time in the past six days.

"We experienced in the last three months one of the nicest rallies in Wall Street history, and now we’re seeing the reasons why," said Robert Lutts, president of Cabot Money Management, which oversees $400 million in Salem, Massachusetts. "Texas Instruments and others are bumping up guidance nicely, and many companies that reported very negative consumer reactions are pulling that guidance back a bit."

S&P 500’s Worst Year

The S&P 500’s rebound following its worst year since the Great Depression came after the government and Federal Reserve pledged $12.8 trillion to end the first global recession since World War II. The index trades at about 14.8 times the earnings of its companies, near the seven-month high of 15.2 reached in May while below the 19.9 average over the last decade.

Texas Instruments climbed 6.3 percent to $21.02. Second- quarter profit will be 14 cents to 22 cents a share on sales of $2.3 billion to $2.5 billion as demand improved for wireless semiconductors. Analysts projected profit of 10 cents a share on sales of $2.21 billion, according to a Bloomberg survey.

Intel Corp., the world’s largest chipmaker, advanced 3.1 percent to $16.42.

Technology companies in the S&P 500 climbed 0.9 percent collectively and contributed the most to the index’s advance. The group has rallied 25 percent this year for the steepest gain among 10 industries.

Financial Shares Rally

The Financial Select Sector SPDR Fund, an exchange-traded fund tracking financial shares in the S&P 500, rose 0.7 percent.

American Express, the largest credit-card network by purchases, jumped 5 percent to $26.93 for the top gain in the Dow.

The U.S. Treasury approved 10 banks to buy back $68 billion of government shares, reducing officials’ authority to intervene in everything from lending and hiring strategies to compensation policies.

While the government didn’t name the banks, American Express, JPMorgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley, Bank of New York Mellon Corp., BB&T Corp., Capital One Financial Corp., Northern Trust Corp., State Street Corp. and U.S. Bancorp all said they are repaying the funds.

Energy and commodity producers advanced. Chevron Corp., the second largest U.S. energy company, and Schlumberger Ltd., the biggest oilfield service contractor, contributed the most to the advance in a gauge energy shares.

Oil Advances

Crude oil rose above $70 a barrel and gasoline climbed to an eight-month high as the dollar fell, bolstering the appeal of energy as an alternative investment.

Oil advanced 2.8 percent as rising stock prices reduced the need for holding the U.S. currency as an inflation hedge. The U.S. Energy Department will probably report tomorrow that refiners boosted operating rates to meet summer gasoline demand, according to a Bloomberg News survey.

Crude for July delivery gained $1.92 to $70.01 a barrel at 2:51 p.m. on the New York Mercantile Exchange, the highest settlement since Nov. 4. Prices have risen 57 percent this year.

The dollar fell against the euro for the first time in three days as speculation the global recession may be ending reduced demand for the greenback as a refuge.

The pound advanced versus the dollar as Britain’s political turmoil eased and house prices showed signs of stabilizing last month. Goldman Sachs Group Inc. recommended that its clients buy the euro versus the dollar, citing a recovery in global growth expectations and a "broader pickup" in demand for higher- yielding assets.

Dollar Retreats

The dollar slid 1.3 percent to $1.4078 against the euro at 4:06 p.m. in New York, from $1.39 yesterday. The yen traded at 137.09 versus the euro, compared with 136.89. The dollar decreased 1.1 percent to 97.36 yen from 98.49.

Treasury notes rose as yields near the highest level since November helped spur investor demand at the government’s record- tying auction of $35 billion of three-year securities.

Thirty-year debt fell as traders prepared for the sale of an additional $30 billion in notes and bonds in the next two days. Today’s sale drew a yield of 1.960 percent, lower than forecast in a Bloomberg News survey. Short-term Treasuries earlier snapped a three-day decline as Wall Street firms that trade directly with the Federal Reserve say speculators betting that interest rates may head higher this year are wrong.

Yields Fall

The two-year note yield fell 10 basis points, or 0.10 percentage point, to 1.30 percent at 5:02 p.m. in New York, according to BGCantor Market Data. The 0.875 percent security maturing in May 2011 rose 6/32, or $1.88 per $1,000 face amount, to 99 5/32. The yield touched 1.43 percent yesterday, the highest level since Nov. 5.

Gold rose, halting a two-session slide, on speculation that a weaker dollar will spur demand for the metal as an alternative investment. Gold typically moves inversely to the currency.

Gold futures for August delivery climbed $2.20, or 0.2 percent, to $954.70 an ounce on the New York Mercantile Exchange’s Comex division. Gold for immediate delivery rose $2.12, or 0.2 percent, to $953.93 in London at 7:09 p.m. local time.

To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net.