TOP STORIES
FED RELEASES RESULTS OF BANKS' STRESS TESTS
The Federal Reserve clears the way for many of the nation's
largest banks to raise dividends and buy back shares as it released
the results of its latest round of stress tests.
JPMORGAN LEADS BANKS SET TO RAISE DIVIDEND
J. P. Morgan Chase leads a flurry of the biggest U.S. banks in
announcing dividend increases and stock buybacks, two days before
the Fed was initially set to release the results of this year's
stress tests.
FED STAYS PAT ON MONETARY POLICY
Fed's policy committee holds its course in its assessment of the
U.S. economy, acknowledging improvements in the labor market, but
cautioning economic risks remain and inflation could rise
temporarily due to recent oil and gas price increases.
US STOCKS SURGE TO MULTIYEAR HIGHS
Shares finish broadly higher, catching an early lift from solid
economic data and rocketing in the final hour after surprise
stress-test results from JP Morgan and Bank of America. DJIA ends
at 13178, its highest close since December 2007.
US RETAIL SALES UP 1.1%; INVENTORIES CLIMB
Sales at U.S. retailers rise 1.1% to an adjusted $407.81 billion
last month, in line with estimates and the fastest pace of growth
in five months as spending increases at auto dealerships, gas
stations and clothing stores.
TRADE FIGHT FLARES OVER CHINA MINERALS
The Obama administration escalates its trade offensive against
China by asking the World Trade Organization to force the export
giant to ease its stranglehold on rare-earth minerals, a move that
China's state media says could trigger a backlash and hurt
ties.
GOP HOPEFULS BATTLE FOR ALABAMA, MISSISSIPPI
Polls are set to close within hours in Mississippi and Alabama,
where Mitt Romney has an opportunity to add to his lead in the
Republican presidential race by winning in Southern contests he has
characterized as "a bit of an away game."
DELL TO PAY ABOUT $1.2 BLN FOR SONICWALL
Dell says it will buy tech-security company SonicWall, the
computer maker's latest effort to expand beyond its traditional
hardware businesses. People familiar with the matter value the deal
at $1.2 billion, and one says the price includes SonicWall
debt.
GREECE TO GET FIRST PAYMENT BEFORE MARCH 20
Greece will get its first payment under the second bailout
program before March 20, the European Council of member states
says.
CALPERS PANEL BACKS CUT IN PENSION RETURN TARGET
A committee of the Calpers board votes to lower the $225 billion
pension fund's assumed rate of return to 7.5% from 7.75%, meaning
California city and county governments must pay millions in added
contributions to Calpers.
JP MORGAN FUND HALTS FUNDRAISING FOR NOW
J.P. Morgan Chase has for now ceased efforts to raise a new $750
million real estate fund because of lack of investor interest in
the type of high-risk, high-return deals that it was planning to
do, sources say.
======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES =======
POINT OF VIEW
Treasury Yield Rise Greets Realistic Fed
Yields on U.S. Treasury 10-year notes are at highest level of
the year, albeit still in a remarkably low neighborhood. It's as if
a big economic bear has thrown in the towel. That perceived
economic skeptic is the Federal Reserve. Neal Lipschutz
explains.
BIG PICTURE
Shoppers Return To Malls--With Wallets Open
Despite some caveats to U.S. retail figures, sales increases at
department stores and on Internet shopping sites suggest consumers
have entered the virtuous cycle that propels an economy from
recovery into expansion, writes Kathleen Madigan.
============ U.S. MARKETS ACTION ===========
DJIA up 217.97 points to 13177.68
NASDAQ up 56.22 points to 3039.88
S&P 500 up 24.86 points to 1395.95
10-year T-note 98 26/32 at 2.1301 yield
NYMEX Crude up $0.37 at $106.71/bbl at close
Dollar/Euro down 0.0090 at 1.30840