US stocks delivered a positive result overnight with financial and consumer shares leading the advance, as investors welcomed bullish comments from an analyst, which lifted hopes that banks' quarterly results may be stronger than expected.
The Dow Jones industrial average rose 185 points to 8,332. The S&P500 Index added 22 points to 901 and the NASDAQ rose 37 points to 1,793. In economic news: The US Treasury Department said the federal budget deficit increased in June to $94.3 billion. The result is the biggest ever for June and it pushes the total budget shortfall for the first nine months of the fiscal year to over $1 trillion.
In company news:Analyst Meredith Whitney told CNBC that bank shares were in for at least a short-term gain of 15%, and that major financials, including Bank of America (NYSE:BAC) which is among those reporting this week, could do well in the second quarter. The news sent Bank of America shares 9.34% higher to $12.99.
Whitney also sparked investor interest in Goldman Sachs (NYSE:GS) with the stock moving 5.34% higher to $149.44. Whitney’s firm upgraded Goldman to "buy" from "neutral," on the belief that it will be a key competitor in debt markets.
Cit Group (NYSE:CIT) shares fell 11.76% to $1.35 as the commercial lender said it remained in discussions with regulators on measures to improve its near-term liquidity. The Wall Street Journal also reported the company had hired a law firm to explore a possible bankruptcy filing.
Google (NASDAQ:GOOG) shares lifted 2.39% to $424.30, after Jefferies raised its price target on the Internet company to $465 from $442 ahead of its quarterly results, citing resilience in paid clicks and the ability to lower traffic acquisition costs.
Checking the NASDAQ Top 100LThe standout performer overnight was Flextronics which added 6.37% to $4.34. Lam Research and Urban Outfitters posted good gains. On the downside, the worst performer was Expeditors, which fell 5.62% to $29.88. Dell and Dish Network also closed weaker.
