* Deutsche Bank nears $5.4 bln settlement with DOJ - AFP
* U.S-listed Deutsche Bank stock set for best day since 2011
* Banks bolster S&P, Goldman drives Dow
* Indexes up: Dow 1.02 pct, S&P 0.91 pct, Nasdaq 0.94 pct
(Updates to early afternoon)
By Yashaswini Swamynathan
Sept 30 Wall Street rallied on Friday as a
bounce in Deutsche Bank shares powered financial stocks.
Deutsche Bank's U.S.-listed shares surged as much as
15.2 percent after French news agency AFP reported that the bank
was nearing an agreement with U.S. officials to pay $5.4 billion
to settle charges related to selling toxic mortgage bonds before
the financial crisis.
The stock had lost more than 22 percent in the past two
weeks after the U.S. Department of Justice demanded $14 billion
from the German lender to settle the charges.
Deutsche Bank's German-listed stock recovered
smartly from record lows to close up 6.4 percent.
The S&P 500 financial index was on track for its
best day in eight weeks, rising 1.48 percent and outpacing gains
in other major sectors.
The index had lost nearly 1.5 percent on Thursday, sparked
by declines in Deutsche Bank and Wells Fargo.
For the moment, the Deutsche Bank news is providing a bid to
financials and the broader market, said Ryan Larson, head of
equity trading at RBC Global Asset Management.
Shares of JPMorgan, Bank of America
Citigroup and Morgan Stanley rose between 1.6
percent and 2.8 percent and were among the top influences on the
S&P 500 index.
Goldman Sachs' 1.4 percent rise gave the Dow its
At 12:32 p.m. ET (1632 GMT), the Dow Jones Industrial
Average was up 185.15 points, or 1.02 percent, at
The S&P 500 was up 19.5 points, or 0.91 percent, at
2,170.63 and the Nasdaq Composite was up 49.44 points,
or 0.94 percent, at 5,318.60.
The three indexes are set to clock gains for the quarter,
while only the Nasdaq is set to close higher for the month.
Ten of the 11 major S&P 500 sectors were higher, while
utilities was the only sector in the red.
Qualcomm shares rose 3.5 percent after sources said
the company was in talks to buy NXP Semiconductors in a
deal valued at more than $30 billion. NXP was up 6 percent.
Cognizant shares plunged 14.6 percent, making it
the biggest loser among S&P companies, after the IT services
provider said it was conducting an internal investigation into
possible violations of U.S. anti-corrupt practices laws related
to payments in India.
Advancing issues outnumbered decliners on the New York Stock
Exchange by 2,228 to 665. On the Nasdaq, 2,046 issues rose and
The S&P 500 index showed 19 new 52-week highs and three new
lows, while the Nasdaq recorded 54 new highs and 26 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by