U.S. stocks advanced after a government report showed the rate of job losses slowed last month, reducing concern that the recession is worsening, and Wells Fargo & Co. cut its dividend to save cash. Wells Fargo gained 8.5 percent after saying its business was “strong” in January and February. General Electric Co., Bank of America Corp. and Citigroup Inc. added more than 4 percent as American employers eliminated 651,000 jobs in February, down from a revised 655,000 in January and compared with the median economist estimate of 650,000. “Maybe we’re starting to get to where we’re at the high point of unemployment, and maybe we plateau from here,” said Jason Cooper, who helps manage $3 billion at 1st Source Investment Advisors in South Bend, Indiana. “We’ll probably have a good day today because you didn’t see any huge surprises.” The Standard & Poor’s 500 Index rose 0.9 percent to 688.66 at 9:31 a.m. in New York. The Dow Jones Industrial Average gained 53.37 points, or 0.8 percent, to 6,647.81. Europe’s Dow Jones Stoxx 600 Index dropped 0.4 percent as Italy’s benchmark sank to a record low. The S&P 500 is headed for its fourth straight weekly decline as the worsening recession, a third government rescue for Citigroup Inc. and dividend cuts at companies from General Electric Co. to JPMorgan Chase & Co. helped drag the measure down 24 percent this year. The index has fallen 7.2 percent this week. The jobless rate surged to 8.1 percent, more than forecast and the highest since December 1983, the Labor Department said today in Washington. Could Be Worse “Maybe it’s a relief and people saying it could have been a lot worst,” said Gary Shilling, an economist at A. Gary Shilling & Co. in Springfield, New Jersey, who predicted the recession that began in December 2007. He remains concerned that the economy is worsening and job losses will increase. “Higher unemployment means the economy is more likely to drag on consumer spending, which feeds on itself and leads to weaker stocks, which also weighs on consumer sentiment,” Shilling added. More than $1.6 trillion has been erased from U.S. equities since Jan. 20 as mounting bank losses and rising unemployment convinced investors the recession is getting worse. The Dow average has fallen 20 percent since Inauguration Day, the fastest drop under a new president in at least 90 years, as investors speculated Barack Obama’s stimulus measures won’t revive the economy anytime soon. H&R Block Inc. rose 8 percent to $18.70. The biggest U.S. tax preparer reported third-quarter earnings from continuing operations of 20 cents a share, double the average analyst estimate.

Source