Bank of America Corp. and American Express Co. rose at least 2.5% to lead the Dow Jones Industrial Average up 123.57 points, or 0.8%, to 15,215.25 today. Financial shares climbed 1.7% as a group, leading gains among all of the 10 main industries in the S&P 500. Tepper, who led Institutional Investor’s ranking of the top earners in hedge funds last year with $2.2 billion, said Appaloosa still owns stock of Citigroup Inc. and other U.S. banks. Citigroup rallied 2.4%.
The U.S. is in the early stages of an economic recovery, Tepper said, citing improvements in the auto and housing industries. The hedge-fund manager, who in January said in a Bloomberg Television interview that the U.S. “is on the verge of an explosion of greatness,” said the nation is going to have a “great manufacturing renaissance” that may start in 2015 or 2016.
“I am definitely bullish,” Tepper said today on the cable television network. “The budget deficit is shrinking massively. Guys who are short, they better have a shovel to get out of the grave.”
Among European stocks, Lonmin Plc sank 7.3% as the world’s third-largest platinum producer halted operations at its Marikana mine in South Africa after workers refused to go underground. Jeronimo Martins SGPS SA slid 6% after Asteck SA sold half its 10% stake in Portugal’s biggest retailer.
Severn Trent Plc, the U.K.’s second-largest publicly traded water company, jumped 14% to a record after receiving an approach from a group comprised of Borealis Infrastructure Management Inc., the Kuwait Investment Office and Universities Superannuation Scheme.
The MSCI Emerging Markets Index snapped a three-day slump, rising 0.2% as a stronger yen boosted exporters. Benchmark gauges in South Korea, Poland and Turkey added at least 1%, and India’s Sensex rebounded from its biggest drop in a year. Brazil’s Ibovespa Index was little changed.