US stocks erased early losses and finished with solid gains as financials rallied after insurer Hartford Financial raised its 2008 profit outlook and said that its capital position is strong.

The Dow Jones Industrial Average advanced 259.18 points, (+3.09%), to 8,635.45. The S&P 500 rallied 30.85 points (+3.65%) to 876.7. The Nasdaq Composite soared 63.75 points (+4.41%) to 1,509.31.

For the week, Dow was down 193.62 points or 2.19%. S&P lost 20.17 points or 2.25%, while Nasdaq Composite settled with a weekly loss of 26.26 points or 1.71%.

Financials surged after insurer Hartford Financial Services Group Inc (NYSE:HIG) raised its 2008 profit forecast on Friday. The company now expects to earn in the range of $4.70 to $4.90 a share, higher than its October's guidance of $4.30 to $4.50.The company also said that its capital position is strong enough to "withstand further downdrafts in equity markets."Shares of the company skyrocketed $7.38 or 102.36% to finish at $14.59.

Lincoln National Corp. (NYSE: LNC) soared $5.15 or 42.18% to $17.36. Prudential Financial Inc. (NYSE: PRU) rose $7.35 or 34.72% to $28.52.Principal Financial Group Inc. (PFG) leaped $5.56 or 40.76% to $19.20.  MetLife Inc. (NYSE: MET) jumped 22.45%. 

Bank of America Corp. (NYSE: BAC) climbed 90 cents or 6.28% to $15.24.J.P Morgan (NYSE: JPM) gained $2.27 or 3.65% to close at $58.23.  Citigroup Inc. (NYSE: C) was up 31 cents or $4.19% at $7.71.

Shares of asset management firm Legg Mason Inc. (NYSE: LM) increased 10% after the company announced it is planning to reduce 200 jobs, or about 8% of its staff, as part of restructuring. "The company is on track to realize sustainable savings of $120 million in corporate expenses by the end of this fiscal year," said Legg Mason in a statement.

SanDisk Corp. (SNDK), maker of memory cards shot up $1.15 or 14.23 to $9.23. Among other technology stock, chip maker Intel Corp. (NASDAQ: INTC) jumped 52 cents or 4.07% to $13.29.

Shares of retailers gained. Wal-Mart Stores (NYSE: WMT) rose $3.10 or 5.63% to $58.21.On Thursday, Wal-Mart Stores Inc. announced that its November same-store sales rose 3.4%, excluding the impact of fuel.

The Home Depot Inc. (NYSE: HD) added $1.18 or 5.08% to $24.40.

Early on Friday, closeout retailer Big Lots (NYSE: BIG) announced that its third-quarter net income declined 15% to $12.2 million or 15 cents a share from $14.3 million or 14 cents a share in the comparable quarter a year ago. Total Sales dropped 0.9% to $1.02 billion. Shares of the company fell 28 cents or 1.72% to close at $16.

Brown-Forman Corp. (NYSE: BF-A) reported that its second-quarter profit jumped to $143 million, or 94 cents a share, from $129 million, or 83 cents a share, in the same quarter in 2007. Analysts were earnings of 96 cents a share. Revenue increased to $935 million compared to $893 million. Brown-Forman Corp.