NEW YORK (Reuters) – The S&P 500 hit its highest level in nine months on Thursday as the U.S. economy showed further signs of recovery and optimism grew that a Greek bailout deal would be agreed next week.

Equity indexes continued to trade in tight ranges, with the S&P 500 facing strong resistance in the 1,355-1,360 area.

U.S. labor, manufacturing and housing data suggested sustained momentum in those key economic sectors and hinted the recovery continues at a steady pace.

“We’re getting this incredible flow of good data,” said Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis. “It’s hard not to want to step into the market.”

Greece expects to get approval on Monday from euro zone finance ministers to begin a debt swap with private bondholders, the spokesman for the Greek government said, moving closer to averting a disorderly default by Athens.

“People are increasingly of the opinion that although Europe will continue to have flare-ups, it’s not likely to become a calamity for the world economy,” Paulsen said.

The Dow Jones industrial average (.DJI) added 118.29 points, or 0.93 percent, to 12,899.24. The S&P 500 Index (.INX) gained 13.29 points, or 0.99 percent, to 1,356.52. The Nasdaq Composite (.IXIC) rose 36.77 points, or 1.26 percent, to 2,952.60.

The S&P hit its highest level since May while the Nasdaq traded near its highest since December 2000 and the Dow was near a four-year high.

Bank shares rose, brushing off a warning from Moody’s about possible downgrades to the credit ratings of 17 global and 114 European financial institutions.

Among the ratings threatened were those of Goldman Sachs (GS.N), up 1.5 percent at $114.82, and Bank of America (BAC.N), up 3.2 percent at $8.03.

The KBW bank index (.BKX) rose 1.8 percent.

Apple (AAPL.O) shares, which largely dictated the direction of Wednesday’s stock market, reversed early losses to trade up 1.2 percent at $503.

Trading in Apple topped 24 million shares, above its 19.5 million average in the past 10 days.

According to a Chinese newspaper website, some cities in China have asked retailers to take Apple iPad tablets off shelves in connection with a legal battle between a Chinese technology firm and Apple over trademark issues.

(Reporting by Rodrigo Campos; Editing by Kenneth Barry)

NEW YORK (Reuters) – Wall Street stocks rose on Thursday on the latest signs of an improving U.S. economy and optimism a Greek bailout deal would be agreed next week.

Equity indexes continued to trade in tight ranges, with the S&P 500 near a nine-month high.

U.S. labor, manufacturing and housing data suggested sustained momentum in the key economic sectors and confirmed the recovery continues at steady pace.

“We’re getting this incredible flow of good data,” said Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis. “It’s hard not to want to step into the market.”

The euro zone is putting the finishing touches to a second bailout deal for Athens that could be approved on Monday, officials said, moving closer to averting a disorderly default by Greece.

“People are increasingly of the opinion that although Europe will continue to have flare-ups, it’s not likely to become a calamity for the world economy,’ Paulsen said.

The Dow Jones industrial average (.DJI) added 109.13 points, or 0.85 percent, to 12,890.08. The S&P 500 Index (.INX) gained 10.52 points, or 0.78 percent, to 1,353.75. The Nasdaq Composite (.IXIC) rose 26.00 points, or 0.89 percent, to 2,941.83.

Bank shares rose, brushing off a warning from Moody’s about possible downgrades to the credit ratings of 17 global and 114 European financial institutions.

Among the ratings threatened were those of Goldman Sachs (GS.N), up 1.2 percent at $114.50, and Bank of America (BAC.N), up 2.8 percent at $8.

The KBW bank index (.BKX) rose 1.7 percent.

Apple (AAPL.O) shares, which largely dictated the direction of Wednesday’s stock market, were off 1.1 percent at $492.24.

Trading in Apple topped 17 million shares at midday, above its 15.4 million average in the last 25 days.

According to a Chinese newspaper website, some cities have asked retailers to take Apple iPad tablets off shelves after a legal battle between a Chinese technology firm and Apple over trademark issues.

(Reporting by Rodrigo Campos; Editing by Kenneth Barry)

(Reuters) – Moody’s warned on Thursday it may cut the credit ratings of 17 global and 114 European financial institutions in another sign the impact of the euro zone government debt crisis is spreading throughout the global financial system.

It was reviewing the long-term ratings and standalone credit assessments of a range of banks, Moody’s added. Markets were unaffected by the Moody’s announcement.

“Capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions,” the ratings agency said in a statement.

It said among 17 banks and securities firms with global capital markets operations, it might cut the long-term credit rating of UBS, Credit Suisse and Morgan Stanley by as much as three notches following the review. It said the guidance was indicative.

Among the banks that might be downgraded by two notches are Barclays, BNP Paribas, Credit Agricole, Deutsche Bank, HSBC Holdings, and Goldman Sachs.

Bank of America and Nomura were included in those that might be downgraded by one notch.

The U.S. rating agency said in a separate statement its action on 114 financial institutions from 16 European nations reflected the impact of the debt crisis and deteriorating creditworthiness of its governments.

It cited more fragile funding conditions, increased regulatory burdens and a tougher economic environment for its review of banks and securities firms with global reach.

Moody’s salvo follows rounds of downgrades in European sovereign ratings as the euro zone’s struggle to keep its weakest link Greece afloat has been driving up borrowing costs and straining finances of other nations.

Last Monday, Moody’s cut the ratings of six European nations including Italy, Spain and Portugal and warned it could strip France, Britain and Austria of their top-level AAA grade.

Standard & Poor’s cut France’s and Austria’s top ratings and downgraded seven other euro zone nations last month. It also cut the euro zone’s bailout fund by one notch.

Moody’s on Thursday also downgraded the insurance financial strength ratings (IFSR) by one or two notches of several insurance companies, which it said related to their investment and operating exposures to Spain and Italy.

These included Unipol Assicurazioni SpA, Mapfre Global Risks, Assicurazioni Generali SpA and Allianz SpA. It affirmed the IFSR of Allianz SE, AXA SA, Aviva Plc and their subsidiaries, but cut the outlook on the rating to negative from stable.

VICIOUS CIRCLE

Asian shares and the euro were weaker on Thursday on concerns about another delay in cementing a bailout for Greece. Traders said markets didn’t not show any specific reaction to the Moody’s announcement.

In its review of European financial institutions, Moody’s said that once completed, the ratings would “fully reflect the currently foreseen adverse credit drivers.”

European banks’ bond holdings of struggling euro zone nations Greece, Portugal, Ireland, Spain and Italy have trapped Europe in a vicious circle.

The falling value of the debt puts pressure on banks, which in turn weighs on lending and economic activity, making it tougher to sustain the growth that governments badly need to shore up their finances.

The biggest single group among the 114 institutions under review were headquartered in Italy, followed by Spain, with more than 20 each. Nine were headquartered in Britain, 10 in France and seven in Germany.

Moody’s said nine of the 17 banks with global reach are included in the list of 114 financial institutions in Europe.

European Union leaders have been trying to put a financial “firewall” around the nations most afflicted by the euro zone debt crisis.

But jittery market sentiment suffered a fresh setback on Wednesday when several EU sources told Reuters that the euro zone was considering a delay in parts of a second bailout plan for Greece.

Moody’s said that for 99 European financial institutions, the standalone credit assessments have been placed on review for downgrade. For 109 institutions, the long-term debt and deposit ratings have been placed on review for downgrade.

For 66 institutions, the short-term ratings have been placed on review for downgrade.

(Additional reporting by Wayne Cole in Sydney: Writing by Tomasz Janowski and Neil Fullick; Editing by Ramya Venugopal)

NEW YORK (Reuters) – Stocks opened little changed on Thursday as concerns about a possible downgrade of global banks by Moody’s were offset by upbeat U.S. data on the labor and housing sectors.

Jobless claims unexpectedly fell last week to a near four-year low, another sign of improvement in the labor market, while January housing starts were also better than forecast.

Moody’s said it may cut the credit ratings of 17 global and 114 European financial institutions in another sign the impact of the euro zone debt crisis was spreading. Among the banks listed were Morgan Stanley (MS.N), Goldman Sachs Group Inc (GS.N) and Bank of America Corp (BAC.N).

The Dow Jones industrial average (.DJI) was up 15.06 points, or 0.12 percent, at 12,796.01. The Standard & Poor’s 500 Index (.SPX) was up 0.19 points, or 0.01 percent, at 1,343.42. The Nasdaq Composite Index (.IXIC) was up 1.50 points, or 0.05 percent, at 2,917.33.

(Reporting by Ryan Vlastelica; editing by Jeffrey Benkoe)

(Reuters) – Moody’s warned on Thursday it may cut the credit ratings of 17 global and 114 European financial institutions in another sign the impact of the euro zone government debt crisis is spreading throughout the global financial system.

It was reviewing the long-term ratings and standalone credit assessments of a range of banks, Moody’s added. Markets were unaffected by the Moody’s announcement.

“Capital markets firms are confronting evolving challenges, such as more fragile funding conditions, wider credit spreads, increased regulatory burdens and more difficult operating conditions,” the ratings agency said in a statement.

It said among 17 banks and securities firms with global capital markets operations, it might cut the long-term credit rating of UBS, Credit Suisse and Morgan Stanley by as much as three notches following the review. It said the guidance was indicative.

Among the banks that might be downgraded by two notches are Barclays, BNP Paribas, Credit Agricole, Deutsche Bank, HSBC Holdings, and Goldman Sachs.

Bank of America and Nomura were included in those that might be downgraded by one notch.

The U.S. rating agency said in a separate statement its action on 114 financial institutions from 16 European nations reflected the impact of the debt crisis and deteriorating creditworthiness of its governments.

It cited more fragile funding conditions, increased regulatory burdens and a tougher economic environment for its review of banks and securities firms with global reach.

Moody’s salvo follows rounds of downgrades in European sovereign ratings as the euro zone’s struggle to keep its weakest link Greece afloat has been driving up borrowing costs and straining finances of other nations.

Last Monday, Moody’s cut the ratings of six European nations including Italy, Spain and Portugal and warned it could strip France, Britain and Austria of their top-level AAA grade.

Standard & Poor’s cut France’s and Austria’s top ratings and downgraded seven other euro zone nations last month. It also cut the euro zone’s bailout fund by one notch.

Moody’s on Thursday also downgraded the insurance financial strength ratings (IFSR) by one or two notches of several insurance companies, which it said related to their investment and operating exposures to Spain and Italy.

These included Unipol Assicurazioni SpA, Mapfre Global Risks, Assicurazioni Generali SpA and Allianz SpA. It affirmed the IFSR of Allianz SE, AXA SA, Aviva Plc and their subsidiaries, but cut the outlook on the rating to negative from stable.

VICIOUS CIRCLE

Asian shares and the euro were weaker on Thursday on concerns about another delay in cementing a bailout for Greece. Traders said markets didn’t not show any specific reaction to the Moody’s announcement.

In its review of European financial institutions, Moody’s said that once completed, the ratings would “fully reflect the currently foreseen adverse credit drivers.”

European banks’ bond holdings of struggling euro zone nations Greece, Portugal, Ireland, Spain and Italy have trapped Europe in a vicious circle.

The falling value of the debt puts pressure on banks, which in turn weighs on lending and economic activity, making it tougher to sustain the growth that governments badly need to shore up their finances.

The biggest single group among the 114 institutions under review were headquartered in Italy, followed by Spain, with more than 20 each. Nine were headquartered in Britain, 10 in France and seven in Germany.

Moody’s said nine of the 17 banks with global reach are included in the list of 114 financial institutions in Europe.

European Union leaders have been trying to put a financial “firewall” around the nations most afflicted by the euro zone debt crisis.

But jittery market sentiment suffered a fresh setback on Wednesday when several EU sources told Reuters that the euro zone was considering a delay in parts of a second bailout plan for Greece.

Moody’s said that for 99 European financial institutions, the standalone credit assessments have been placed on review for downgrade. For 109 institutions, the long-term debt and deposit ratings have been placed on review for downgrade.

For 66 institutions, the short-term ratings have been placed on review for downgrade.

(Additional reporting by Wayne Cole in Sydney: Writing by Tomasz Janowski and Neil Fullick; Editing by Ramya Venugopal)

NEW YORK (Reuters) – Stocks of financial and basic materials companies led Wall Street lower on Tuesday after rallies by those groups this year, while the retail sector hit a record even as retail sales rose less than expected last month.

The weaker-than-expected gain in January retail sales was due in part to discounting in auto sales, but a rebound in an underlying measure of sales underscored the U.S. economic recovery’s strength.

The S&P retail index (.RLX) edged up 0.2 percent to its highest on record.

Bank shares fell before a meeting of euro zone finance ministers on Wednesday to decide on a 130 billion euros bailout for Greece to avert a chaotic default.

“Greece is still very unsettled, and it makes perfect sense people are taking money out of financials,” said Ken Polcari, managing director at ICAP Equities in New York, citing nervousness about the outcome of Wednesday’s meeting.

On Monday, the S&P 500 rose near a seven-month high and was up more than 25 percent from a low in early October. The benchmark index has encountered strong resistance in the 1,355-1,360 area.

“The market is not falling apart. People are just taking some money off the table,” Polcari said.

Financials (.GSPF) led declines on the S&P 500 with a 1.2 percent drop but are up 11 percent this year. Bank of America (BAC.N) shares fell 2.5 percent to $8.04 but have risen nearly 45 percent this year.

Basic materials shares (.GSPM), up almost 10 percent so far in 2012, were down 1 percent.

The Dow Jones industrial average (.DJI) fell 31.49 points, or 0.24 percent, to 12,842.55. The S&P 500 Index (.INX) lost 5.05 points, or 0.37 percent, to 1,346.72. The Nasdaq Composite (.IXIC) dropped 13.28 points, or 0.45 percent, to 2,918.11.

Micron Technology (MU.O) shares rose 5.9 percent to $8.31 after positive comments from analysts at JPMorgan and Oppenheimer. The stock is up 32 percent this year.

Moody’s Investors Service put Britain’s Aaa credit rating in jeopardy for the first time late on Monday. The agency also cut its outlook on the top-tier ratings of France and Austria and downgraded the ratings of six euro-zone nations, including Spain and Italy.

Data from Germany suggested Europe’s bulwark economy is picking up its pace. The ZEW economic think tank’s monthly poll of economic sentiment jumped to 5.4 from minus 21.6 in January, well above the consensus forecast in a Reuters poll of analysts.

Apple (AAPL.O) plans to announce a new version of its iPad in the first week of March, a Wall Street Journal report said, citing a person briefed on the matter. Apple shares rose slightly to $503.33 after closing above $500 for the first time on Monday.

(Reporting by Rodrigo Campos; Editing by Kenneth Barry)

NEW YORK (Reuters) – The S&P 500 index retreated on Tuesday from near a seven-month high after weaker-than-expected January U.S. retail sales data curbed investors’ appetite for risky assets.

Leading the fall was the financial sector, with two of the top three biggest decliners on the Dow Bank of America and JPMorgan Chase & Co (JPM.N).

Citigroup downgraded Bank of America Corp (BAC.N) to “neutral” from “buy,” saying earnings headwinds would continue at the company even as capital concerns subside. Bank of America shares were down 1.1 percent at $8.16 and JPMorgan shares fell 1.5 percent to $37.70.

The 0.4 percent rise in retail sales fell short of the 0.7 percent increase expected by economists polled by Reuters and reflected cutbacks in car purchases and online shopping.

“The data shows that consumers are still hanging in there, just not as strong as we expected,” said Scott Brown, chief economist at Raymond James at St. Petersburg in Florida.

“It shows that we are still battling some headwinds here, but the economy is definitely in a recovery mode.”

The disappointing data added to concerns stemming from Moody’s Investors Service downgrade on Monday of credit ratings on six euro-zone countries.

The Dow Jones industrial average (.DJI) was down 42.54 points, or 0.33 percent, at 12,831.50. The Standard & Poor’s 500 Index (.SPX) fell 6.30 points, or 0.47 percent, at 1,345.47. The Nasdaq Composite Index (.IXIC) was down 12.93 points, or 0.44 percent, at 2,918.46.

On Monday, the S&P 500 rose near a seven-month high, up more than 25 percent from a low in early October. The benchmark index has encountered strong resistance in the 1,355-1,360 area.

In other data, U.S. business inventories rose 0.4 percent in December, slightly lower than an estimated increase of 0.5 percent in December.

A third report showed import prices rose a touch more than expected in January as petroleum and food rebounded strongly, but underlying inflation pressure from imports remained muted.

Late Monday, Moody’s put Britain’s Aaa rating in jeopardy for the first time and warned it may cut France and Austria as well. Moody’s also downgraded six euro-zone nations, including Spain and Italy.

But data from Germany on Tuesday suggested that Europe’s bulwark economy is picking up pace again. The ZEW economic think tank’s monthly poll of economic sentiment jumped to 5.4 from minus 21.6 in January, well above the consensus forecast in a Reuters poll of analysts for a rise to minus 12.0.

Apple Inc (AAPL.O) plans to announce a fourth-generation (4G) version of its iPad in the first week of March, a Wall Street Journal report said, citing a person briefed on the matter. Apple shares rose slightly to $503.41 after hitting above the $500 mark for the first time on Monday.

(Editing by Kenneth Barry)

NEW YORK (Reuters) – The S&P 500 index retreated from near a seven-month high Tuesday after weaker-than-expected January U.S. retail sales data curbed investors’ appetite for risky assets.

U.S. retail sales rose less than expected in January as consumers cut back on car purchases and shopped less online.

The disappointing data added to concerns stemming from Moody’s downgrade Monday of ratings on six euro-zone countries.

“The state of the consumer is still pretty mild. We have had some good economic news but still pretty mild trends all around,” said Sean Incremona, an economist at 4CAST in New York.

The Dow Jones industrial average (.DJI) was down 28.01 points, or 0.22 percent, at 12,846.03. The Standard & Poor’s 500 Index (.SPX) was down 3.97 points, or 0.29 percent, at 1,347.80. The Nasdaq Composite Index (.IXIC) was down 10.23 points, or 0.35 percent, at 2,921.16.

On Monday, the S&P 500 rose near a seven-month high, up more than 25 percent from a low in early October. The benchmark index is hitting strong resistance in the 1,355-1,360 area, a possible trigger for a pullback.

Pressuring the financial sector, Citigroup downgraded Bank of America Corp (BAC.N) to “neutral” from “buy,” saying earnings headwinds would continue at the company even as capital concerns subside. Bank of America shares were down 1.1 percent at $8.16.

(Editing by Padraic Cassidy)

NEW YORK (Reuters) – Stocks rose on Monday, led by bank shares after Greece’s parliament approved reforms needed to qualify for a cash disbursement and avoid an unruly default.

Greek lawmakers backed drastic cuts in wages, pensions and jobs on Sunday as the price of a 130 billion euro ($170 billion) bailout by the European Union and International Monetary Fund.

But unrest in the streets and a voting rebellion by lawmakers of the ruling coalition suggested Greece may be on the brink of massive social unrest, which would make it difficult for Athens to stick to the rescue terms.

The S&P 500 last week hit a 7-month high, in part on bets the Greek reforms would pass. The benchmark index traded near the 1,355 level, seen as a resistance point and possible trigger for a pullback.

“Although we’re up, we still haven’t eclipsed the highs we did last week in some of the indexes,” said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland. “It is a sign there was some more enthusiasm on the prospect (of the Greek deal) than on the news.”

The S&P 500 is up more than 25 percent from a low in early October. McCain said he is worried that the recent market rally may have outpaced the economic improvement.

“You have to respect the fact the market has been as strong as it has been, but we wouldn’t buy into this strength,” he said.

The Dow Jones industrial average (.DJI) rose 82.27 points, or 0.64 percent, to 12,883.50. The S&P 500 Index (.SPX) gained 10.12 points, or 0.75 percent, to 1,352.76. The Nasdaq Composite (.IXIC) added 28.80 points, or 0.99 percent, to 2,932.68.

Financial stocks (.GSPF), up more than 1 percent, were among the best performers on the S&P 500, and bank shares led gains in Europe. A gauge of European banking stocks (.SX7P) gained 0.5 percent, and an index of Greek banks (.FTATBNK) surged 12.3 percent.

On Wall Street, Bank of America (BAC.N) climbed 2.7 percent to $8.29 and is up almost 50 percent this year. Bank shares continue to outperform after having posted deep losses in 2011.

Apple Inc (AAPL.O) raised the stakes in an intensifying global patent battle with Samsung Electronics (005930.KS) by targeting Samsung’s latest model using Google Inc’s (GOOG.O) fast-growing Android software.

Apple shares rose 1.5 percent to $500.95 after reaching a record of $503.83, while Google rose 1.2 percent to $613.26.

Google is expected to win approval from European regulators, as well as from U.S. antitrust authorities, for its planned $12.5 billion purchase of Motorola Mobility (MMI.N), according to people familiar with the matter.

Regeneron Pharmaceuticals Inc (REGN.O) jumped 13 percent to $115.37 after the company significantly raised its 2012 sales forecast for a key eye drug.

As earnings season moves into its final stages, 51 companies in the S&P 500 are scheduled to report results this week. According to Thomson Reuters data through Monday, of the 357 companies in the benchmark index that have released results, 64 percent have beaten analyst expectations.

(Reporting by Rodrigo Campos; Editing by Kenneth Barry)