Stocks rise on oil's retreat, GDP revision
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By Jennifer CooganNEW YORK (Reuters) - Wall Street stocks rose on Thursday as a swift drop in oil soothed inflation fears, while an upward revision in a broad measure of U.S. economic growth suggested a recession may be avoided.Contributing to the optimism was a near 8 percent gain in MasterCard shares after the credit card processor lifted its long-term profit outlook as more consumers increasingly turn to plastic over cash.Financial companies, many of which have credit card units, have suffered some of the biggest losses this year. The sector outperformed most others following the MasterCard announcement and a government report that revised upward gross domestic product growth in the first quarter."The data in general is coming in surprisingly better than expected. Everybody was stating 'Recession, recession, no doubt about it,' but the data is coming out as just borderline recession," said Steve Goldman, market strategist at Weeden &Co. in Greenwich, Connecticut.The Dow Jones industrial average <.DJI> ended up 52.19 points, or 0.41 percent, at 12,646.22. The Standard & Poor's 500 Index <.SPX> was up 7.42 points, or 0.53 percent, at 1,398.26. The Nasdaq Composite Index <.IXIC> was up 21.62 points, or 0.87 percent, at 2,508.32.Technology stocks are set to start Friday's session on a strong note after Dell Inc , the No. 2 personal computer maker, reported earnings after the closing bell that beat Wall Street's expectations.Dell shares rose more than 6 percent to $23.22 in after-hours trading.MasterCard shares rose 7.7 percent to close at $309 on the NYSE.JPMorgan Chase & Co stock was another big gainer in the financial sector, rising 1.7 percent to $43.57. A bank spokesman said its $1.5 billion deal to acquire Bear Stearns Cos Inc would be completed on Friday, well ahead of previous forecasts.Further boosting financials were mounting expectations that Bank of America's deal to acquire mortgage lender Countrywide Financial would go through. Countrywide's shares rose more than 8 percent to $5.39 while Bank of America was up 2.2 percent at $34.60.Energy and materials stocks were the only sectors lower on Thursday. Both sectors were hurt by a decline in commodity futures, including a 3.4-percent decline in oil futures to $126.62 a barrel.Exxon Mobil shares were the biggest drag on the S&P 500. The oil producer's stock fell 1.2 percent to $89.35 while rival Chevron's shares dropped 1.6 percent to $98.86, making them the biggest drag on the Dow.Retail stocks were riding high following several earnings reports that beat Wall Street forecasts.Close-out retailer Big Lots posted a higher-than-expected gain in profit on strong sales at older stores and lifted its full-year earnings forecast, sending its shares up 7.5 percent to $30.66.Discount store operator Fred's Inc also beat Wall Street expectations after its restructuring initiative succeeded. Fred's shares ended up 5.6 percent at $12.10.(Editing by Gary Crosse)
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