(By Salman - iStockAnalyst Writer)US stocks finished with gains on Monday as stronger-than-expected services index data boosted investor sentiment.
The Dow Jones Industrial Average climbed 112.08 points or 1.18% to finish at 9,599.75. The S&P 500 rallied 15.25 points or 1.49% to end at 1,040.46. The Nasdaq Composite gained 20.04 points or 0.98% to 2,068.15.
The Institute of Supply Management reported that its non-manufacturing index rose to 50.9 percent from 48.4 percent in August. A reading above 50 indicates expansion.
Alcoa Inc. (NYSE:
AA), the largest US aluminum maker, soared 60 cents or 4.68% to $13.42.
Shares of financials rallied on Monday after Goldman Sachs upgraded large U.S. banks from "Neutral" to "Attractive," citing the dramatic improvement in earning power at the large banks versus the regionals. "We believe this difference in earnings power has not been fully reflected in share prices," the report added. As part of the call, Goldman upgraded Wells Fargo (NYSE:
WFC) to Buy, added Capital One (NYSE:
COF) to their Conviction Buy List, and reiterated their Conviction Buy List ratings on JPMorgan (NYSE:
JPM) and Bank of America (NYSE:
BAC). Goldman said tangible assets per share have jumped 29% for large banks compared to a 25% decline for regionals. Pre-provision earnings per asset has increased 7% compared to a drop of 14% for regionals. JP Morgan & Chase (NYSE:
JPM) jumped $1.94 or 4.63% to $43.80. Bank of America Corp. (NYSE:
BAC) surged 62 cents or 3.79% to $16.96. American Express Co. (NYSE:
AXP) gained 73 cents or 2.25% to $33.22.
Financial services provider Goldman Sachs Group, Inc. (NYSE:
GS) will stand to receive $1 billion payment, while the U.S. taxpayers stands to lose $2.3 billion, if troubled commercial lender CIT Group, Inc. (NYSE:
CIT) files for Chapter 11 bankruptcy protection, the Financial Times reported on Sunday.
