U.S. Stocks Advance After Wal-Mart Beats Estimates; Cisco Rises

U.S. stocks rose for the first time in three days after Wal-Mart Stores Inc. beat sales estimates, Morgan Stanley said Cisco Systems Inc. may as well and Goldman Sachs Group Inc. said credit losses may be nearing an end.

Wal-Mart, the world's largest retailer, climbed to a three- year high after shoppers seeking discounted food and electronics lifted sales. Cisco, the biggest maker of computer-networking equipment, led technology shares to the steepest gain in the Standard & Poor's 500 Index. Citigroup Inc. and Wachovia Corp. rallied, helping financial shares rebound from earlier declines, after Goldman Chief Executive Officer Lloyd Blankfein said ``we're closer to the end than the beginning'' of the credit crisis.

The S&P 500 added 9.81, or 0.7 percent, to 1,364.3 at 12:26 p.m. in New York. The Dow Jones Industrial Average rose 93.39, or 0.8 percent, to 12,620.65. The Nasdaq Composite Index increased 35.65, or 1.5 percent, to 2,357.77. More than two stocks gained for every one that fell on the New York Stock Exchange.

``We're overweight technology, we're starting to look at some of the beaten-down consumer discretionary stocks and also some of the beaten-down financials,'' Michael Chren, who helps oversee about $1.5 billion as managing director at Allegiant Asset Management Co. in Palm Beach Gardens, Florida, said in an interview with Bloomberg Television. ``The market will lift off before we get any signs that earnings have troughed. You want to be prepared for that move.''

Shares also advanced after jobless claims decreased more than forecast last week. The S&P 500 has rebounded 7.2 percent from a 19-month low on March 10, with all 10 of its industry groups advancing over the past month.

Wal-Mart Sales

Wal-Mart gained $1.01 to $55.15. March sales rose 0.7 percent and the company increased its forecast for first-quarter earnings. First-quarter profit may be 74 cents to 76 cents a share, compared with an earlier forecast of 70 to 74 cents, the retailer said.

Citigroup, the largest U.S. bank, climbed 46 cents to $24.04 after earlier falling 2 percent. Wachovia, the fourth-biggest, jumped 95 cents to $27.57. Goldman, the world's largest securities firm, slipped $1.79 to $172.35.

Blankfein said the credit crisis that's forced almost $250 billion in losses and writedowns at the world's biggest finance companies may be approaching an end.

'Closer to the End'

``We're closer to the end than the beginning,'' Blankfein said today at the company's annual meeting in New York. ``We're maybe at the end of the third quarter, or the beginning of the fourth.''

Cisco Systems climbed 54 cents to $24.07 after Morgan Stanley said it may beat analysts' revenue estimates in its fiscal third quarter.

``Mid-quarter checks with resellers, distributors, and component suppliers suggest that end-demand held up through the end of March,'' analyst Scott Coleman wrote in a note to investors.

Lexmark International Inc., the second-largest U.S. printer maker, rallied $2.24 to $32.60 after Lehman Brothers Holdings Inc. said profit may top analysts' projections. Analyst Caroline Sabbagha boosted her first-quarter earnings forecast to 96 cents a share from 82 cents.

DuPont Co. gained 71 cents to $49.75. First-quarter earnings climbed to about $1.29 a share, topping company forecasts, as record crop prices boosted sales of seeds and pesticides to farmers.

Initial jobless claims dropped by 53,000, more than double economists' forecast, to 357,000 in the week ended April 5, the Labor Department said today in Washington. The four-week moving average, a less volatile measure, increased to 378,250, reaching the highest level since October 2005.