By Chuck Mikolajczak
Financial stocks outperformed as well on the strength of earnings surprises from Northern Trust
Technology shares may get a boost for a second straight session after Apple
Intel
During the regular session, the market shrugged off a brief sell-off after Treasury Secretary nominee Timothy Geithner faced tough questioning at his confirmation hearing before a Senate committee.
The day after earnings results from State Street alarmed investors about losses in one of the safest parts of banking, earnings from rival Northern Trust Corp
PNC Financial Services Group Inc
"People are excited because financials are valued so low at this point. It's the mentality that they can't get any lower, but they've proven time and time again that they can," said Jocelynn Drake, market analyst at Schaeffer's Investment Research in Cincinnati, Ohio.
The Dow Jones industrial average <.DJI> gained 279.01 points, or 3.51 percent, to 8,228.10. The Standard & Poor's 500 Index <.SPX> rose 35.02 points, or 4.35 percent, to 840.24. The Nasdaq Composite Index <.IXIC> climbed 66.21 points, or 4.60 percent, to 1,507.07.
The rise marked the Dow's largest point and percentage gain since December 16, 2008, but the index remains down 6.3 percent month-to-date.
IBM AND JPMORGAN BOOST THE DOW
International Business Machines Corp
investors to believe the Dow component can weather the global economic downturn.
Apple led the Nasdaq higher, ahead of its quarterly earnings report after the closing bell, and in spite of a report that U.S. regulators were examining the company's disclosures about CEO Steve Jobs' health. Apple's stock closed on Nasdaq at $82.83, up 5.9 percent.
Hearings on Geithner's appointment attracted the market's attention for much of the day as he is seen as President Barack Obama's point man in battling the economic crisis. As the president of the Federal Reserve Bank of New York since 2003, Geithner is expected to hit the ground running if confirmed as Treasury secretary. The Senate Finance Committee is scheduled to vote on Geithner's nomination on Thursday.
A day after his historic inauguration, Obama met with his economic advisers, who are working with the Democratic-led Congress on an $825 billion fiscal stimulus package.
The financial sector drove gains in the S&P 500 following Tuesday's sharp sell-off, which was ignited by deepening fears of insolvency among banks.
The broad KBW index of bank stocks <.BKX> and the S&P financials index <.GSPF> both jumped 14.6 percent.
Bank of America
JPMorgan Chase
SINGING THE eBAY BLUES
On the downside, Wal-Mart Stores Inc
After the bell, shares of eBay
Trading volume was active on the New York Stock Exchange, with about 1.74 billion shares changing hands, above last year's estimated daily average of roughly 1.49 billion, while on Nasdaq, about 2.14 billion shares traded, below last year's daily average of 2.28 billion.
Advancing stocks outnumbered declining ones on the NYSE by a ratio of 4 to 1, while on the Nasdaq, about three stocks rose for every one that fell.
(Editing by Jan Paschal)