Stocks set to rise after Euro bank move

By msnbc.com news services

U.S. stocks are set to climb Wednesday after European banks absorbed more than half a trillion euros as part of an effort to stabilize the euro zone's financial system.

Banks grabbed 530 billion euros at the European Central Bank's second offering of low-cost three-year loans, fueling hopes that more credit will flow to businesses and government borrowing costs will ease further. The borrowings topped expectations.

In economic news, new data showed the economy grew a bit faster than initially thought in the fourth quarter on slightly firmer consumer and business spending, which could help to allay fears of a sharp slowdown in growth in early 2012.

Gross domestic product expanded at a 3 percent annual rate, the quickest pace since the second quarter of 2010, the Commerce Department said in its second estimate. That was a step up from the 2.8 percent pace it reported in January.

The U.S. stock market is seen adding to the previous day's gains that catapulted the Dow industrials and the S&P 500 above key levels to close at multi-year highs.

The Dow closed above 13,000 for the first time since May 2008 on Tuesday, while the S&P ended above 1,370, its May 2011 intraday high, which could entice money managers seeking to boost returns. But some analysts warned this year's rally has come in light volume, and further gains could trigger selling.

Reuters contributed to this report.

Related:

Dow could be in for letdown after crossing 13,000 barrier

Source: http://bottomline.msnbc.msn.com/_news/2012/02/29/10538746-stocks-set-to-rise-after-euro-bank-move

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