* Growth-sensitive stocks lead advance on recovery bets
* Cruise operator Carnival raises outlook, stock jumps
* Dow up 0.5 pct; S&P 500 up 0.7 pct; Nasdaq up 0.4 pct
* For up-to-the-minute market news, click STXNEWS/US
(Updates to close)
By Ellis Mnyandu
NEW YORK, Sept 22 (Reuters) - U.S. stocks rose on Tuesday,
as investors bet the U.S. Federal Reserve will stick to its
accommodative policy to foster economic recovery, boosting
growth-sensitive sectors such as financials, technology and
industrials.
The gains were broad-based, with all but three of the 10
S&P 500 industry sectors ending higher. Energy and other
natural resources stocks were underpinned by resurgent global
commodity prices as the U.S. dollar retreated.
The Federal Reserve began a two-day policy-setting meeting
on Tuesday. Its policy statement is due on Wednesday around
2:15 p.m. (1815 GMT).
With no change expected in interest rates, investors
probably will focus on the bank's assessment of the economic
outlook, particularly after Chairman Ben Bernanke said last
week that the recession was "technically" over.
"Bernanke's research will have him staying the course here,
in an accommodative fashion for a bit longer, and I think the
market very much believes that and is trading off of that,"
said Dean Curnutt, president of Macro Risk Advisors, an equity
derivatives strategy and execution brokerage, in New York.
"Ultimately, the extent to which the Fed is accommodating
this market needs to be unwound, and we'll see if we hear more
on that tomorrow. Our sense is that there will not be a
tremendous amount" of information on that topic.
The Dow Jones industrial average <> gained 51.01
points, or 0.52 percent, to end at 9,829.87. The Standard &
Poor's 500 Index <.SPX> rose 7.00 points, or 0.66 percent, to
1,071.66. The Nasdaq Composite Index <> climbed 8.26
points, or 0.39 percent, to 2,146.30.
Among financials, Citigroup <C.N> shares jumped 5 percent
to $4.65 following news that Singapore wealth fund GIC has cut
its stake in the U.S. banking company in half. []
Bank of America <BAC.N> rose 2.1 percent to $17.61 after
Rochdale Securities analyst Richard Bove raised his price
target on the stock, citing the bank's strengthened financial
condition. []
The S&P 500 financial index <.GSPF> was up 2.3 percent.
On the technology front, Google Inc <GOOG.O> was a
particular standout, hitting an intraday high of $501.99 -- its
highest level since August 2008. Google's stock ended up 0.4
percent at $499.06 on Nasdaq.
Carnival Corp & Plc <CCL.N><CCL.L> lifted its 2009 earnings
forecast and said ticket prices for its cruises were
stabilizing, sending the shares of the world's largest cruise
operator up 4.8 percent to $33.52. []
Among industrials, Caterpillar Inc <CAT.N> shot up 3.6
percent to $54.34.
Among commodity plays, Newmont Mining <NEM.N> added 1.8
percent to $45.22, and Alcoa Inc <AA.N> rose 2.3 percent to
$14.26.
Signs that the U.S. Treasury's $43 billion auction of new
two-year notes met strong demand added to the positive tone.
Investors have scrutinized auction results closely this
year, especially after worries surfaced back in May about the
longevity of the United States' prized AAA credit rating.
The U.S. dollar's slide to a one-year low against the euro
helped propel global commodity prices higher, with U.S.
front-month crude <CLc1> up 2.6 percent, or $1.84, to settle
at $71.55 a barrel, while spot gold <XAU=> rose toward an
18-month high approaching $1,020 an ounce.
The S&P 500 has risen 58.4 percent since hitting a 12-year
closing low on March 9.
(Editing by Jan Paschal)
