U.S. stocks rose for a third day as American International Group Inc. said it expects to repay the government and data on manufacturing and economic indicators added to evidence the recession may be ending. Treasuries gained as the dollar and oil fell.
AIG rallied 21 percent for the top gain in the Standard & Poor’s 500 Index after Chief Executive Officer Robert Benmosche said the company also hopes it will be able to “do something for our shareholders.” Google Inc. climbed 3.7 percent after being added to Goldman Sachs Group Inc.’s “conviction buy” list. Prudential Financial Inc. advanced 4.3 percent after FBR Capital Markets advised buying the shares.
The S&P 500 rose 1.1 percent to 1,007.37 at 4:05 p.m. in New York. The Dow Jones Industrial Average jumped 70.89 points, or 0.8 percent, to 9,350.05. Four stocks advanced for each that fell on the New York Stock Exchange.
Equities extended gains as the index of U.S. leading economic indicators rose in July for a fourth consecutive month. The Conference Board’s gauge of the economic outlook gained 0.6 percent for the longest series of increases since 2004. Manufacturing in the Philadelphia region unexpectedly expanded in August for the first time in almost a year, according to a Federal Reserve report.
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