MARKET SNAPSHOT: Government Moves May Boost Stocks, But Not Necessarily Dividends

By Kate Gibson

Friday's stock advance had investors banking on more fiscal stimulus from the government, but other possible congressional action had Standard & Poor's Index Services cutting its projected dividend rate on the S&P 500.

"Due to recent events, including potential congressional action that might limit dividend payments, we are reducing the indicated dividend rate on the S&P 500," said Howard Silverblatt, senior index analyst at Standard & Poor's.

However, hopes for quick congressional passage on an economic-stimulus plan helped propel equities higher Friday, with an ugly January unemployment report proving less dire than many feared.

The Dow Jones Industrial Average (DJI) gained 217.52 points, or 2.7%, to 8, 280.59, up 3.5% for the week. The S&P 500 (SPX) rose 22.75 points, or 2.7%, to 868.60, a weekly rise of 5.2%, while the Nasdaq Composite (RIXF) added 45.47 points, or 2.9%, to 1,591.71, up 7.8% from last Friday's close. .

Standard & Poor's Index Services said Friday that it expects S&P 500 dividends to decline 13.3% in 2009, the worst yearly drop since 1942, when dividends fell 16.9%.

Standard & Poor's now expects $214.66 billion in dividend payments for S&P 500 companies in 2009, compared to $247.9 billion last year.

LATIN AMERICAN MARKETS: Bovespa Paces Gains As Investors Eye Rate Cuts, U.S. Stimulus

By Carla Mozee

Latin American equities surged Friday and finished the week with gains as investors hoped for the U.S. Senate to pass President Barack Obama's economic stimulus package.

In Brazil, a higher-than-expected reading on monthly consumer prices bolstered market sentiment that an interest-rate cut is on its way. The benchmark Bovespa index rose 4% to 42,755.50, its best closing since Oct. 3.

Stocks also were higher in Mexico, Chile and Argentina.

All sectors traded in the black, with market heavyweight Petrobras (PBR) holding onto a 4.2% gain even as oil prices retreated. Crude for March delivery fell 2.4% to $40.17 a barrel on the New York Mercantile Exchange.

Shares of steel producers leaped, with prices for metals up. Companhia Vale do Rio Doce (RIO) climbed 3.6%, Gerdau (GGB) rose 4.2% and Usiminas tacked on 3.6%.

The market's view that the country's central bank will continue to cut rates when it meets in March strengthened Friday after the census bureau said January's IPCA consumer price index rose 0.48% due to seasonal factors and increases in food prices. The index rose 0.28% in December, vs. an expected increase of 0.41%.

MARKET SNAPSHOT: Stocks Pin More Hopes On Stimulus, Rescue Plan

By Nick Godt

Investors are poised to start next week eager for plans from the government to boost the economy and rescue the financial system, which could help bulls cement a nascent February rally in stocks.

Hopes that the market has already priced in much of a dismal outlook for the economy this year were also evident Friday, as stocks rallied past news that January saw the biggest loss of jobs since 1974.

"The market is possibly looking at what we see today and thinking that we can't get much worse than that," said Paul Nolte, director of investments at Hinsdale's Associates. "It's not yet expecting that things will get better, but at least not much worse."

On Friday, the Dow Jones Industrial Average (DJI) jumped 217 points, or 2.7%, to end at 8,280. The S&P 500 index (SPX) gained 22 points, or 2.7%, to 868, while the Nasdaq Composite (RIXF) rallied 45 points, or 2.9%, to 1,591.