US STOCKS-Wall St climbs as banks rise on upbeat data

                                
 * ISM, home sales add to hopes economy is stabilizing
                                
 * Private-sector job losses accelerate
                                
 * Potential bankruptcy for GM weighs
                                
 * Dow up 1.6 pct; S&P and Nasdaq each up 1.3 pct
                                
 * For up-to-the-minute market news click [STXNEWS/US]
 (Updates to midday, changes byline)
                                
 By Rodrigo Campos
                                
 NEW YORK, April 1 (Reuters) - U.S. stocks rose on
Wednesday as investors turned to financial stocks following
factory and home sales data that showed the economic slump
could be moderating.
                                
 Factory activity in March shrank at a slower pace than the
month before, while pending sales of existing homes rose in
February amid a continuing decline in prices. For more see
[ID:nN01477676].
                                
 The data more than offset negative sentiment arising from
a report showing job losses in the private sector accelerated
in March, as well as fears that struggling automaker General
Motors could be headed for bankruptcy.
                                
 Financial shares turned around following the manufacturing
and homes data, on bets an improvement in the economic outlook
will boost financial activity, with JPMorgan Chase <JPM.N> up
4.6 percent at $27.79 while Bank of America <BAC.N> gained 4.3
percent to $7.10.
                                
 The S&P financials index <.GSPF> added 2.6 percent.
                                
 "Because we fell off a cliff, you need to get a lot of
diverse areas telling us it's not as bad this month as it was
last month and that's what's happening," said Linda Duessel,
market strategist at Federated Investors in Pittsburgh.
                                
 "They're all little, but there's ever-increasing numbers
of them."
                                
 The Dow Jones industrial average <.DJI> gained 118.67
points, or 1.56 percent, to 7,727.59. The Standard & Poor's
500 Index <.SPX> rose 10.31 points, or 1.29 percent, to
808.18. The Nasdaq Composite Index <.IXIC> added 19.46 points,
or 1.27 percent, to 1,548.05.
                                
 The S&P 500 gained about 19 percent from 12-year lows hit
in early March and on Tuesday closed out its best month since
October 2002. The rally has been fueled by hopes that the
economy is showing signs of stabilization.
                                
 Shares of homebuilders were among the top gainers for the
day following the home sales data, with Centex Corp <CTX.N> up
6.9 percent at $8.02 and Lennar Corp <LEN.N> up 2.3 percent at
$7.68. The Dow Jones home construction index <.DJUSHB> gained
4.5 percent.
                                
 Overall gains were kept in check, however, by steep
declines in the health-care sector. Celgene Corp <CELG.O> was
among the heaviest weights, falling 16 percent to a fresh
52-week low at $37.25 after the biotechnology company forecast
first-quarter earnings below estimates, prompting at least
four brokerages to cut their price target on the stock.
[ID:nBNG498766] Celgene was the top drag on the Nasdaq.
                                
 The S&P health-care index <.GSPA> fell 0.9 percent and the
sector was the session's worst performer.
                                
 Shares of General Motors <GM.N> fell 5.7 percent to $1.83
following a New York Times report that the Obama
administration is seeking to ease GM into a "controlled"
bankruptcy, but a senior official said the White House remains
optimistic that GM can restructure without going to bankruptcy
court. [ID:nWBT010980]
                                
 Market watchers were also focused on the Group of 20
summit in London as leaders of the world's top economies meet
to tackle the global economic crisis.
 (Additional reporting by Edward Krudy; Editing by Jan
Paschal)