MW : Analyst upgrades help lift bank stocks; AIG surges
eanwhile, shares of bailed-out insurance giant American International Group Inc. (AIG 33.52, +6.88, +25.81%) rallied nearly 30% as a reported shift in strategy fueled investor hope.
A barometer of financial shares, the Financial Select Sector SPDR Fund (XLF 14.20, +0.29, +2.09%) , gained 2% in midday trade after closing flat on Wednesday.
Markets were encouraged by a recovery in China's volatile stock market and seemed to shrug off a Labor Depart showing a surprising jump in initial claims for state unemployment benefits. See Economic Report.
AIG shares surged after the firm's new chief executive in a published report said he won't sell business units unless AIG gets fair value for them.
Robert Benmosche, who took over as CEO earlier this month, told AIG workers he'll rebuild businesses and won't be rushed by the U.S. into dumping assets at distressed prices, Bloomberg reported Thursday, sourcing a recording of an Aug. 4 meeting for employees.
