U.S. stocks advanced for the first time in three days
as an unexpected drop in jobless claims spurred optimism that the
economy can withstand record energy prices and $379 billion in
credit-market losses.
International Business Machines Corp. and JPMorgan Chase & Co.
led gains in the Dow Jones Industrial Average after the government said
first-time unemployment claims decreased by 9,000 last week. Limited
Brands Inc. rallied after the operator of the Victoria's Secret
lingerie chain posted earnings that topped analysts' estimates. Eight
of 10 industry groups in the Standard & Poor's 500 Index rose as
the benchmark for U.S. equities rebounded from its biggest two-day
tumble since March.
Limited Brands climbed
2.3%. Profit excluding items was 11 cents a share, 3 cents above the
average estimate of analysts surveyed by Bloomberg. The company also
forecast higher annual earnings than it previously projected.
Utility shares gained after NRG Energy Inc. made an unsolicited offer to buy Calpine Corp.
for $9.6 billion in stock. NRG, the second-biggest power producer in
Texas, offered 0.534 share for every Calpine share, or 6.7% above
yesterday's closing prices, as it seeks to become the largest
independent power company in the U.S. NRG lost 4%. Calpine jumped 9.4%.
Dynegy Inc., the owner of power plants in 12 U.S. states, gained for the eight day, rising 2.6 percent to $9.83.