STOCKS NEWS US-Indian ADRs surge after elections

Stocks on the move [HOT-RTRS] Real-time Equity news [U E] [RESF/US]
U.S. stock market report [.N]
1050 ET 18May2009-Indian ADRs surge after elections
------------------------------------------------------------------------------

New York-traded shares of Indian companies mirrored a more than 17 percent
surge in Indian shares following elections results which cemented the
hold of the ruling Congress party.

A victory for the Congress has raised investor hopes for a strong
government able to push through reforms in the banking and insurance sectors,
as well as move ahead on privatization. [ID:nBOM484673]

The Bank of New York Mellon's index of Indian ADRs .BKIN shot up 17.1
percent while the broad ADR index .BKADR gained 3 percent.

Among the top gainers, ADRs of ICICI Bank Ltd (IBN.N) surged 29.3 percent
to $30.25.

Reuters Messaging: rodrigo.campos.reuters.com@reuters.net
1041 ET 18May2009-Markets rise on Lowe's, Bank of America
------------------------------------------------------------------------------

Major U.S. indexes rose on Monday, lifted after Lowe's Cos (LOW.N) reported
better-than-expected quarterly results and raised its outlook. Sentiment was
also boosted after Goldman Sachs added Bank of America Corp (BAC.N) to its
conviction buy list.

For details, see [ID:nN18344020]

The Dow Jones industrial average .DJI rose 1.6 percent to 8,401.01 while
the S&P 500 .SPX gained 1.4 percent to 895.80 and the Nasdaq .IXIC was up 1
percent to 1,698.81.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1033 ET 18May2009-Goldman upgrades aerospace sector, cuts defense
------------------------------------------------------------------------------

Goldman Sachs on Monday upgraded the U.S. aerospace sector to attractive,
and time downgraded the defense group to cautious. The firm expects investors
to "increasingly rotate out of the latter and into the former, particularly
given that, at current trading levels, one pays the same price for trough
aerospace earnings as they do for peak defense earnings."

The firm added that expectations were low for aerospace, while traditional
buy signals -- including aircraft orders -- were close to a bottom.

Goldman wrote that defense spending had peaked, and that it was a lower
priority than it used to be for the government.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1028 ET 18May2009-Gas prices rise on Sunoco refinery fire
------------------------------------------------------------------------------

Gasoline prices rose on Monday, after an explosion at Sunoco Inc's (SUN.N)
oil refinery in Pennsylvania cut fuel production.

"The fire is under control and is contained and I don't know when it will
be out and will not speculate on that," said Sunoco spokesman Thomas
Golembeski.

"Some production has been shut in," he said.

For details, see [ID:nN18302858]

Shares of Sunoco rose 2.1 percent to $28.77 on Monday.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1019 ET 18May2009-BMO upgrades banking sector to outperform
------------------------------------------------------------------------------

BMO Capital Markets on Monday upgraded the U.S. banking sector to
outperform, saying "We believe significant upside still exists in the bank
group based on 'normalized' earnings power, even after factoring any dilution
from capital raises."

"Looking through to 2011," it added, "we expect investors to begin valuing
banks on price/earnings based on 'normalized' earnings per share."

As part of its call, BMO upgraded BOK Financial Corp (BOKF.O), East West
Bancorp Inc. (EWBC.O), TCF Financial Corp (TCB.N) and U.S. Bancorp (USB.N) to
outperform from market perform.

The KBW Banks index .BKX rose 5.7 percent to 38.73 on Monday.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net