The U.S. stock market climbed a second day on fading home-loan concerns after Bear Stearns Cos.' earnings report and the acquisition of a mortgage company by General Electric Co. and Blackstone Group LP.
Citigroup Inc., JPMorgan Chase & Co. and Alcoa Inc. led gains in the Dow Jones Industrial Average and the Standard & Poor's 500 Index. Dow Chemical Co. posted its biggest advance since July 2003 on expectations it will merge some assets with India's Reliance Industries Inc.
Bear Stearns, the biggest U.S. underwriter of mortgage bonds, joined Lehman Brothers Holdings Inc. in assuaging concern that defaults among the riskiest borrowers will drag down profits at financial companies. The bank's outlook helped lift 14 of 16 homebuilders in S&P indexes and alleviate concerns raised by accelerating inflation and a prediction by former Federal Reserve Chairman Alan Greenspan that mortgage defaults will hurt the economy.
Read more at Bloomberg.com
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