* Equities, crude oil hit fresh 10-month highs
* Citigroup upgrades AMD, shares jump
* Warner Chilcott soars on Procter deal
(Updates to mid-morning)
By Rodrigo Campos
NEW YORK, Aug 24 (Reuters) - U.S. stocks rose to 10-month
highs on Monday, extending last week's gains as investors
became even more optimistic about signs that major world
economies were emerging from recession.
With little new U.S. data on Monday to give the market
direction, investors built on upbeat comments last week from
Federal Reserve chief Ben Bernanke about the prospects for an
economic recovery. Euro zone data on Monday showing industrial
new orders rebounded more than expected provided more evidence
of recovery. For details see [].
"We had a decent performance last week after a slow start
that picked up steam," said Kurt Brunner, portfolio manager at
Swarthmore Group in Philadelphia.
"What we're seeing is follow through from last week's
strength."
The Dow Jones industrial average <> gained 49.35
points, or 0.52 percent, to 9,555.31. The Standard & Poor's 500
Index <.SPX> rose 6.27 points, or 0.61 percent, to 1,032.40.
The Nasdaq Composite Index <> added 10.24 points, or 0.51
percent, to 2,031.14.
Financial stocks were the best performers, with the S&P
financial sector index <.GSPF> rising 1.6 percent. Shares of
American Express Co <AXP.N>, Capital One Financial Corp
<COF.N>, and Discover Financial Services <DFS.N> rose after
Barclays Capital upgraded the credit card issuers to
"overweight." [].
Further supporting financial stocks, Citigroup said sector
stocks were all trading "well below" their mean relative
performance levels, "suggesting opportunity remains in place
even after the impressive rally experienced over the past five
months."
Shares of Advanced Micro Devices <AMD.N> jumped 10.3
percent to $4.08 after Citigroup upgraded the chipmaker to
"buy." The PHLX semiconductor index <.SOXX> gained 1.3
percent.
Regarding company news, specialty drugmaker Warner
Chilcott's <WCRX.O> shares soared more than 24 percent to
$19.92 after news it is acquiring Procter & Gamble Co's <PG.N>
pharmaceuticals business for $3.1 billion. [].
Shares of energy companies also rose as crude oil futures
<CLc1> hit a fresh 10-month high of $74.81 per barrel,
supported by expectations that an economic recovery would spur
demand for oil. The S&P energy index <.GSPE> gained 1.4
percent.
On the economic data front, the Federal Reserve Bank of
Chicago said its National Activity Index was minus 0.74 in
July, up from minus 1.82 in June, as production-related
indicators turned positive for the first time since October.
At noon (1600 GMT), the Chicago Fed will also release its
Midwest Manufacturing Index for July. The index read 78.1 in
June.
(Editing by Chizu Nomiyama)
