1:45 pm - US STOCKS-Banks lift S&P, GE hits Dow; Nasdaq up with Google

US STOCKS-Banks lift S&P, GE hits Dow; Nasdaq up with Google By Chuck Mikolajczak NEW YORK, Jan 23 (Reuters) - Wall Street ended a difficult week with the broad S&P 500 closing higher on Friday as investors bought beaten-up financials on hopes of further aid from Washington, offsetting a disappointing outlook from General Electric that kept the Dow under water. GE's stock dropped almost 11 percent after the economic bellwether reported earnings that met Wall Street's expectations, but warned of an "extremely difficult" 2009. News that President Barack Obama and his economic advisers will meet on Saturday fueled hopes that the new administration will put together another rescue package for the ailing financial sector. The S&P Financial Index rose 3.4 percent. "Financials are getting a lift in anticipation of more creative federal involvement from the Obama White House next week," said Peter Kenney, managing director at Knight Equity Markets in Jersey City, New Jersey. "People are expecting the financials to get significant help." The Dow Jones industrial average shed 45.24 points, or 0.56 percent, to 8,077.56. But the Standard & Poor's 500 Index rose 4.45 points, or 0.54 percent, to 831.95. The Nasdaq Composite Index added 11.80 points, or 0.81 percent, to 1,477.29. For the week, the Dow dropped 2.5 percent, the S&P 500 slipped 2 percent and the Nasdaq fell 3.4 percent. The Nasdaq was the best-performing index, led higher on Friday by large technology companies, including Google Inc , whose shares rose5.9 percent to $324.70 after the Silicon Valley company's quarterly earnings beat estimates. JPMorgan Chase and Bank of America were among the top-performing financial stocks. Some analysts cited market talk of further government cash injections to banks, while others said investors were tempted by stocks whose prices were slashed in this week's sell-off. JPMorgan Chase, gained 5.1 percent to $24.28 and gave the greatest support to the Dow, while Bank of America's stock shot up 9.3 percent to $6.24, while Citigroup jumped nearly 12 percent to $3.47, all in NYSE trading. Chevron ranked among the Dow's best performers as March crude oil futures rose more than 6 percent to settle above $46 a barrel, aided by expectations of a cold snap in the U.S. Northeast. Chevron gained 1.2 percent to $70.82. During the session, the Dow briefly turned positive, but it couldn't overcome the drag of GE and investors' concerns about the weak business outlook in 2009 for some major industrial companies. Investors also fretted about a possible dividend cut at General Electric despite reassuring comments by the company's chief executive. GE's stock lost 10.8 percent to $12.03. Fellow Dow component United Technologies Corp, which was downgraded to "market perform" by Bernstein Research, lost 3.2 percent to $47.41. Also weighing on the Dow was Caterpillar, which dropped 4.2 percent to $35.66 after rival Komatsu Ltd lowered its profit forecast for the year, citing a sharp decline in global demand. Trading volume was light on the New York Stock Exchange, with about 1.42 billion shares changing hands, slightly below last year's estimated daily average of roughly 1.49 billion, while on the Nasdaq, about 2.19 billion shares traded, slightly below last year's daily average of 2.28 billion. Advancing stocks outnumbered decliners on the NYSE by a ratio of about 8 to 7. But on the Nasdaq, the trend was the opposite, with about seven stocks falling for every six that rose. (Editing by Jan Paschal) Keywords: MARKETS STOCKS
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