* Bank shares lifted after Basel III agreement
* Upbeat China factory data boosts economic optimism
* ArcSight soars after HP deal
* Indexes up: Dow 0.9 pct, S&P 1.1 pct, Nasdaq 1.4 pct
* For up-to-the-minute market news see []
(Updates to midmorning)
By Leah Schnurr
NEW YORK, Sept 13 (Reuters) - U.S. stocks rose on Monday,
with the S&P 500 breaking through its 200-day moving average on
upbeat Chinese factory data, as financial stocks gained after
new global banking rules allowed for extended deadlines for
raising capital.
Another acquisition in the technology sector added to the
positive tone, with indexes eyeing a fourth straight winning
session, and the eighth day of gains out of nine for the S&P
500 and Dow. With Monday's advance, all three indexes were in
positive territory for the year.
Global regulators agreed Sunday to force banks to more than
triple top-quality capital reserves in hopes of preventing
another credit crisis. But the new rules, known as "Basel III,"
provide transition periods that could extend to January 2019 or
later -- more time than many bankers expected. For details, see
[]
Banks led the way up, with JPMorgan Chase & Co <JPM.N>
rising 3.7 percent to $41.22, while Bank of America Corp
<BAC.N> rose 3.4 percent to $14.01. The Select Sector Financial
SPDR <XLF.P> added 2.1 percent to $14.84.
It was the first time since early August that the S&P 500
surpassed its 200-day moving average. The market has traded in
a tight range in recent months, and investors will be looking
for a definitive break-out to see if the market can manage a
new leg up.
"This is a market that's really struggled to get out of
this trading range of around 1,025 to 1,125 on the S&P 500,"
said Craig Peckham, equity trading strategist at Jefferies & Co
in New York.
"If we're able to actually hold and extend gains from here,
that could certainly be a bit of a confidence builder for
people who have gotten accustomed to this market really failing
around these levels."
The Dow Jones industrial average <> gained 89.23
points, or 0.85 percent, to 10,552.00. The Standard & Poor's
500 Index <.SPX> rose 12.12 points, or 1.09 percent, to
1,121.67. The Nasdaq Composite Index <> climbed 32.32
points, or 1.44 percent, to 2,274.80.
Chinese factories ramped up production in August, data
showed, while a key measure of money growth easily topped
expectations. The data built on recently improved sentiment in
U.S. markets as worries eased over whether the economy was
headed back into recession. []
Hewlett-Packard Co <HPQ.N> said it would buy cybersecurity
company ArcSight Inc <ARST.O> for $1.5 billion, the latest in a
series of technology-sector transactions. ArcSight surged more
than 25 percent to $43.91, while HP edged up 0.2 at $38.27.
[]
(Editing by Jeffrey Benkoe)
