U.S. stocks gained for a second day on speculation a government report showing the highest unemployment rate since 1992 will force Congress to pass an economic stimulus package. Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. rallied at least 7 percent to lead gains in the Dow Jones Industrial Average. Nine of the 10 industry groups in the Standard & Poor’s 500 Index advanced after the Labor Department said the nation lost 598,000 jobs last month and the unemployment rate climbed to 7.6 percent. The S&P 500 rose 1.5 percent to 858.13 at 10:32 a.m. in New York. The Dow Jones Industrial Average added 140.26 points, or 1.7 percent, to 8,203.33. Stock-index futures fell before the open of exchanges on concern President Barack Obama’s $900 billion package of spending and tax cuts is stalling in the Senate. “They see this as putting additional pressure on Congress and the president to put forth a stimulus package,” said Peter Jankovskis, the Lisle, Illinois-based co-chief investment officer at Oakbrook Investments LLC, which manages $1.1 billion. “People are looking at this as something that will force a resolution of the current deadlock.” The S&P 500 has retreated 4.8 percent this year as earnings at companies from Microsoft Corp. to Procter & Gamble Co. disappointed investors and the economy shrank at the fastest pace in 26 years. The benchmark index for U.S. equities is still 14 percent above an 11-year low reached on Nov. 20 amid speculation the stimulus legislation will spur growth. The gauge is on course for a 3.6 percent gain this week, snapping a four- week stretch of declines. Stimulus Vote The Senate put off a vote on the stimulus package until at least today after lawmakers failed to agree on how to cut the more than $900 billion measure. Labor Department data released today showed the unemployment rate climbed from 7.2 percent in December as employment suffered the biggest monthly decline since December 1974. While the figures were worse than the median estimates in a Bloomberg survey of economists, investors were braced for negative news after job cut announcements in recent weeks by companies including Starbucks Corp., Caterpillar Inc. and Macy’s Inc., as well as yesterday’s unexpected surge in new claims for unemployment insurance benefits to a 26-year high, said James Paulsen, chief investment strategist at Wells Capital Management in Minneapolis. Wells Capital oversees about $220 billion. ‘Thinking Ahead’ “People are thinking ahead to what are these numbers going to look like in June,” Paulsen said. “Main Street is in free- fall, which is where Wall Street was in September and October. Wall Street since mid-October has been flat, and that’s what Main Street might look like by spring or early summer.” Financial companies in the S&P 500 gained 5 percent collectively, the biggest advance among 10 industry groups. Investors are awaiting details of Obama’s strategy to aid the nation’s banks. Treasury Secretary Timothy Geithner on Feb. 9 is scheduled to announce a plan that’s likely to emphasize guarantees for impaired assets, according to people familiar with the plan. Bank of America, the largest U.S. lender by assets, rallied 15 percent to $5.57 to pare its year-to-date slide to 60 percent. Citigroup added 6.7 percent to $3.77, while JPMorgan jumped 6.9 percent to $26.24. Dividend Concern Hartford Financial Services Group Inc. bucked the trend, falling 27 percent to $10.95 after reporting a loss and cutting its dividend. The Connecticut-based seller of life insurance and property coverage had a fourth-quarter net loss of $806 million and missed a capital target because of losses on commercial real estate and debt securities. It lowered its quarterly dividend to 5 cents a share from 32 cents. It was 53 cents a year ago. Dividends for companies in the S&P 500 index will fall 13.3 percent this year, the steepest annual decline since 1942, S&P forecast in a report today. Profits decreased 37 percent on average for the 307 companies in the S&P 500 that have released fourth-quarter results since Jan. 12, according to data compiled by Bloomberg. The period is projected to be the sixth straight quarter of decreasing profits, the longest streak on record.

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