* GM's shares rise 3.6 percent on first day after IPO
* Optimism over Ireland economy sparks broad rally
* VIX drops the most in more than five months
* Dow up 1.6 pct, S&P up 1.5 pct, Nasdaq up 1.6 pct
* For up-to-the-minute market news see []
(Updates to close, changes byline)
By Rodrigo Campos
NEW YORK, Nov 18 (Reuters) - U.S. stocks jumped on Thursday
on expectations of an imminent resolution of Ireland's banking
crisis, but the S&P 500's inability to break through resistance
suggests stocks could be in a tight range through 2010.
General Motors Co's <GM.N> shares gained 3.6 percent in its
return to public trading and accounted for about 5.1 percent of
regular session volume, according to Thomson Reuters data. For
details, see []
However, given how much Ireland's financial woes hampered
stocks in recent days, GM's success was a side note to the
rescue of another troubled European country's finances.
[].
U.S.-listed shares of Bank of Ireland <BKIR.I><IRE.N>
climbed 33.3 percent to $2.88.
Despite the bullish sentiment, the S&P 500 hovered around
1,200 for most of the session but failed to hold above the key
level. This could mean the index's trading range will remain
tight for the rest of the year.
"There's a lot of selling pressure at the 1,200 level,
there's buying pressure at 1,150 and we're in a tight range
until further notice," said Joe Battipaglia, market strategist
at Stifel Nicolaus in Yardley, Pennsylvania.
Piercing the 1,200 level would leave the S&P 500 facing
hefty resistance at 1,228, the highest it has been in more than
two years.
Reflecting less market uncertainty, the CBOE Volatility
index <.VIX> fell 13.8 percent, its largest percentage daily
drop in more than 5 months.
The Dow Jones industrial average <> gained 173.35
points, or 1.57 percent, to 11,181.23. The Standard & Poor's
500 <.SPX> rose 18.10 points, or 1.54 percent, to 1,196.69. The
Nasdaq Composite <> added 38.39 points, or 1.55 percent,
to 2,514.40.
GM shares shot up as much as 9.06 percent as investors bet
the U.S. automaker can make a sustained recovery as it returned
to the market after a blockbuster IPO. The stock closed up 3.6
percent at $34.19.
The S&P Industrials index <> rose 1.8 percent as GM's
advance boosted shares of other automakers and auto suppliers.
"This morning we had the big push from GM and the
enthusiasm that creates," Battipaglia said.
The S&P materials sector <.GSPM> added 1.9 percent and the
energy sector <.GSPE> gained 2.2 percent as expectations of the
Irish bailout strengthened the euro against the U.S. dollar,
boosting commodity prices and shares in related sectors.
Aluminum producer Alcoa Inc <AA.N> was the top percentage
gainer in the Dow industrials, up 3.4 percent to $13.38.
Adding to the upbeat sentiment, U.S. weekly applications
for unemployment insurance hit a two-year low last week and
factory activity in the country's mid-Atlantic region
accelerated in November, suggesting the economy's recovery was
gaining speed. For details see [].
About 8.2 billion shares traded on the New York Stock
Exchange, the American Stock Exchange and Nasdaq, below the
year-to-date average of 8.7 billion.
Advancing stocks outnumbered declining ones on the NYSE by
more than 4 to 1, while on the Nasdaq about three stocks rose
for every share that fell.
(Reporting by Rodrigo Campos; Editing by Kenneth Barry)
