US STOCKS-Wall Street climbs on GE divestment, buyback plan

viernes 10 de abril de 2015 11:51 GYT

* GE set for $50 bln buyback plan; most active on NYSE

* Import prices decline, in line with expectations

* Indexes up: Dow 0.5 pct, S&P 0.47 pct, Nasdaq 0.34 pct (Adds comments, updates to late morning trading)

By Tanya Agrawal

April 10 (Reuters) - U.S. stocks climbed on Friday as investors lauded GE's decision to divest the bulk of its high-risk GE Capital business and on its share repurchase plan.

The S&P Industrials was up 1.5 percent as the best performing of the 10 major S&P sectors, paced by GE's gain.

General Electric jumped 7.6 percent to $27.69 as the most active stock on the New York Stock Exchange, with more than 236 million shares changing hands. The advance came after GE said there was potential to return more than $90 billion to investors through 2018.

"The GE deal is very transformative. The stock has been under-owned by institutional investors and that's going to change now," said Tom Donino, co-head of equity trading at First New York Securities.

GE will sell the bulk of its $30 billion real estate portfolio over the next two years as it returns to its industrial roots, with Blackstone and Wells Fargo snapping up most of its assets. Blackstone shares were up 1.9 at $39.99 and Wells Fargo shares inched up 0.2 percent to $54.33.   Continuación...