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U.S. stocks rose, after the biggest weekly gain since 2009 in the Standard & Poor’s 500 Index, as Italy’s Mario Monti proposed budget cuts and Germany and France pushed for a new European Union treaty to fight the debt crisis.
Italian borrowing costs dropped as Italy’s Prime Minister Monti will lobby parliament to support a 30 billion-euro ($40 billion) package of austerity and growth measures. German Chancellor Angela Merkel and French President Nicolas Sarkozy pushed for a rewrite of the EU’s governing treaties to tighten economic cooperation as a first step to ending the debt crisis.
Merkel’s government won’t stand in the way of Bundesbank help to fight the crisis by means of loans channeled through the International Monetary Fund, a senior Merkel ally said.
Stocks rose even as the Institute for Supply Management’s non-manufacturing index fell to 52 in November from 52.9 a month earlier. The measure was projected to rise to 53.9, according to the median forecast in a Bloomberg News survey. Separate data showed that American factories received fewer orders in October for a second month.
Dow 12,159.70 +140.28 +1.17%, Nasdaq 2,669.79 +42.86 +1.63%, S&P 500 1,264.29 +20.01 +1.61%
All 10 groups in the S&P 500 gained, led by financial shares. Bank of America Corp. (BAC) and JPMorgan Chase & Co. (JPM) climbed at least 4 percent.
MetLife Inc., the largest U.S. life insurer, advanced 4.7 percent after saying earnings will probably increase in 2012.
Dollar General Corp. added 1.5 percent after the dollar store chain raised its annual earnings forecast and said it will buy back as much as $500 million in shares.
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