* Financials rise on details of toxic asset plan
* Existing-home sales jump in February
* Dow up 4.4 pct, S&P 500 up 4.5 pct, Nasdaq up 4.2 pct
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(Updates to midday, changes byline)
By Rodrigo Campos
NEW YORK, March 23 (Reuters) - U.S. stocks jumped more than
4 percent on Monday after long-awaited details from the Obama
administration on its plan to remove distressed assets from
bank balance sheets fueled optimism it will spark a revival in
lending, driving up financial shares.
The success of the plan hinges on private investment, and
several large investors have said they will participate in what
has become a key part of the government's efforts to unlock
tight credit markets and revitalize the recession-hit economy.
Removing toxic assets from bank balance sheets is seen key
to freeing up banks to make new loans.
Banks were standouts in the broad-based rally, with
Citigroup <C.N> up 17.6 percent to $3.08 and Bank of America
<BAC.N> up 17 percent to $7.24. Both the KBW Bank Index <.BKX>
and the S&P financial sector index rallied about 10 percent.
"It is excellent that we've had statements by some money
managers that they are interested in participating in the
program," said Charles Lieberman, chief investment officer at
Advisors Capital Management in Hasbrouck Heights, New Jersey.
"Ultimately you have to bet that Treasury is going to get
what it wants, which is a healthier banking system as well as
an economic recovery."
The plan involves generous government financing to woo big
investors to buy up toxic bank assets.
Adding to the positive tone, data showed the pace of U.S.
existing-home sales rose 5.1 percent in February, the biggest
increase since July 2003. A rebound in the housing market is
seen as key to an economic recovery.
The Dow Jones industrial average <> gained 322.25
points, or 4.43 percent, to 7,600.63. The Standard & Poor's 500
Index <.SPX> rallied 34.84 points, or 4.53 percent, to 803.38.
The Nasdaq Composite Index <> jumped 60.90 points, or 4.18
percent, to 1,518.17.
The benchmark S&P 500 index is up more than 18 percent from
the bear market closing low set on March 9, and was on track
for its first close above the 800 level since Feb. 13.
The Treasury Department will kick off the financing for the
so-called Public-Private Investment Program with $75
billion-$100 billion that will come from the $700 billion
financial bailout fund approved by Congress last fall. For
details, see [].
The housing data helped the Dow Jones index of home
builders <.DJUSHB> rally 8.5 percent, with shares of Lennar
<LEN.N> and Ryland Group <RYL.N> up 15 percent and 11.5 percent
respectively.
A large merger deal in the energy sector and rising oil
prices helped lift shares of oil companies, with Exxon Mobil
<XOM.N> up 4.6 percent at $69.15 and Chevron gaining 5 percent
to $67.94.
Canada's No. 2 oil company, Suncor Energy <SU.TO>, agreed
to buy rival Petro-Canada <PCA.TO> for about $14.9 billion to
create Canada's largest oil company. [].
Meanwhile, U.S. crude futures <CLc1> rose more than 3.5 percent
or $1.82 to $53.89 a barrel.
On the earnings front, upscale jeweler Tiffany & Co <TIF.N>
jumped about 14 percent to $23.04 after reporting quarterly
profit that beat expectations. []
And shares of Walgreen Co <WAG.N> rose 19.9 percent to
$26.94 after the drugstore chain posted better-than-expected
profit[].
(Editing by Leslie Adler)
