April 10 (Bloomberg) -- U.S. stocks rose for the first time in three days after Wal-Mart Stores Inc. beat sales estimates and Morgan Stanley said Cisco Systems Inc. would also, overpowering concern the credit squeeze is forcing banks to boost write-offs.
Wal-Mart, the world's largest retailer, climbed to a three- year high after shoppers seeking discounted food and electronics lifted sales. Cisco, the biggest maker of computer-networking equipment, led technology shares to the biggest gain in the Standard & Poor's 500 Index. Lehman Brothers Holdings Inc. retreated after Deutsche Bank AG said the No. 4 U.S. securities firm will write down $2 billion in the second quarter.
The Standard & Poor's 500 Index added 6.39, or 0.5 percent, to 1,360.88 at 10:50 a.m. in New York. The Dow Jones Industrial Average rose 64.08, or 0.5 percent, to 12,591.34. The Nasdaq Composite Index increased 30.37, or 1.3 percent, to 2,352.49. Nine stocks gained for every five that fell on the New York Stock Exchange.
``As people separate financials from overall earnings and really see that earnings growth is going to be very stable, probably up 8 to 10 percent overall ex-financials, that will give the market a heck of a boost,'' Michael Chren, who helps manage about $1.5 billion as managing director at Allegiant Asset Management Co. in Palm Beach Gardens, Florida, said in a interview with Bloomberg Television.
Shares also advanced after jobless claims decreased more than forecast last week. The S&P 500 has rebounded 6.6 percent from a 19-month low on March 10, with all 10 of its industry groups advancing over the past month.
Wal-Mart gained 49 cents to $54.63. March sales rose 0.7 percent and the company increased its forecast for first-quarter earnings. First-quarter profit may be 74 cents to 76 cents a share, compared with an earlier forecast of 70 to 74 cents, the retailer said.
`Demand Held Up'
Cisco Systems climbed 43 cents to $23.96 after Morgan Stanley said it may beat analysts' revenue estimates in its fiscal third quarter.
``Mid-quarter checks with resellers, distributors, and component suppliers suggest that end-demand held up through the end of March,'' analyst Scott Coleman wrote in a note to investors.
Lehman lost 91 cents to $39.63.
``While liquidity seems okay, we continue to expect more writedowns to equity and tougher revenues this year,'' Deutsche Bank analysts led by New York-based Mike Mayo wrote in a research note dated yesterday. Deutsche Bank rates the firm ``buy.''
Capital One fell $1.77, or 3.5 percent, to $48.86, the lowest this month. The credit-card company that set aside $1.9 billion in the fourth-quarter for loan losses said in a filing its annualized net charge-off rate climbed 0.29 percentage points from February to 3.26 percent last month.
Initial jobless claims dropped by 53,000, more than double economists' forecast, to 357,000 in the week ended April 5, the Labor Department said today in Washington. The four-week moving average, a less volatile measure, increased to 378,250, reaching the highest level since October 2005.
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