* Banks bolster S&P 500
* Qualcomm up on talks to buy NXP
* Cognizant plunges on internal probe
* Indexes up: Dow 1.01 pct, S&P 0.86 pct, Nasdaq 0.79 pct
(Adds details, comments, updates prices)
By Yashaswini Swamynathan
Sept 30 Wall Street extended gains on Friday as
a bounce in Deutsche Bank's shares helped lift financial stocks
amid broad gains across sectors.
The S&P 500 financial index rose 1.21 percent,
outpacing gains in other major sectors. The index had lost
nearly 1.5 percent on Thursday, sparked by declines in Deutsche
Bank and Wells Fargo.
Deutsche Bank's U.S-listed stock surged 12.3 percent
after French news agency AFP reported that the bank was nearing
a settlement with the U.S. Department of Justice regarding
The German lender's Frankfurt-listed stock
recovered smartly from record lows to trade up 5.6 percent.
The stock was hammered on Thursday on news that a number of
hedge funds had pulled out collateral as the bank faces a $14
billion demand from U.S. authorities for misselling
Shares of JPMorgan, Bank of America and
Citigroup rose between 1.2 percent and 2 percent on
"Deutsche Bank's problem is probably not as big of a
magnitude as people might think," said Randy Fredrick, managing
director of trading and derivatives at Charles Schwab.
At 11:25 a.m. ET the Dow Jones industrial average was
up 184.12 points, or 1.01 percent, at 18,327.57.
The S&P 500 was up 18.52 points, or 0.86 percent, at
The Nasdaq Composite was up 41.67 points, or 0.79
percent, at 5,310.82.
Ten of the 11 major S&P 500 sectors were higher, while
utilities was the only sector in the red.
Qualcomm shares rose 3.5 percent after sources said
the company was in talks to buy NXP Semiconductors in a
deal valued at more than $30 billion. NXP was up 6 percent.
Cognizant's shares plunged 14.6 percent, making it
the biggest loser among S&P companies, after the IT services
provider said it was conducting an internal investigation into
possible violations of U.S. anti-corrupt practices laws related
to payments in India.
Advancing issues outnumbered decliners on the NYSE by 2,217
to 653. On the Nasdaq, 1,974 issues rose and 676 fell.
The S&P 500 index showed 17 new 52-week highs and three new
lows, while the Nasdaq recorded 46 new highs and 25 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by