US STOCKS-Wall St up on GE plan; indexes set for strong week

viernes 10 de abril de 2015 14:03 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 0.4 pct, Nasdaq 0.3 pct (Updates to afternoon trading)

By Ryan Vlastelica

NEW YORK, April 10 (Reuters) - U.S. stocks climbed on Friday, putting major indexes on track for a week of solid gains as investors lauded GE's decision to divest most of its high-risk GE Capital business and repurchase up to $50 billion of its shares.

All 10 primary S&P 500 sectors were higher on the day, but the S&P Industrials index was by far the best performer, up 1.5 percent, driven by gains in GE shares.

General Electric shares had their biggest one-day jump since March 2009, up 8.7 percent to $27.97. More than 228 million shares changed hands, making the stock the most active name on the New York Stock Exchange by far. 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 rose 2 percent at $39.99 and Wells Fargo inched up 0.2 percent to $54.30.   Continuación...