U.S. Stocks Advance; Bank of America, Citigroup, JPMorgan Rise
By Lynn Thomasson
Aug. 15 (Bloomberg) -- U.S. stocks gained on speculation financial companies can recover from a credit crunch as buyers emerged for bonds backed by mortgages.
Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. led a gauge of banks and brokerages higher for the first time in five days after Canadian financial services firm Coventree Inc. found buyers for asset-backed debt. Genworth Financial Inc., the insurer divested by General Electric Co. in 2006, climbed after saying the mortgage-backed bond market would cost the company no more than $195 million over five years.
``This market to us looks very oversold and I think it's beginning to create some values in stocks,'' said Craig Hester, who oversees $1.5 billion as president of Hester Capital Management in Austin, Texas.
The Standard & Poor's 500 Index rose 4.71, or 0.3 percent, to 1,431.25 as of 11:36 a.m. in New York. The Dow Jones Industrial Average slipped 6.18, or 0.1 percent, to 13,022.74. The Nasdaq Composite Index increased 8.99, or 0.4 percent, to 2,508.11.
Coventree, Canada's biggest non-bank issuer of asset-backed commercial paper, had sought emergency funding because it was unable to refinance debt that matured this week. Today it said found buyers for C$600 million ($557 million) of debt.
Tips: If really a very " Gang Ho " investor to buy this ABS with opinion the market is "oversold", out there still got how many "gang ho" buyer to buy this Sub-Prime product?..So, wait and see...Anyway, advisee is - stand-by your bullet and wait for the right time to re-enter the market. Counters to watch-out: OSK,GENTING,RESORT,HLBANK,HLFG, MAYBE CONSIDER UEMWORLD,FABER,
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