Nov. 30 (Bloomberg) -- U.S. stock-index futures advanced after comments by Federal Reserve Chairman Ben S. Bernanke suggested the central bank will cut interest rates to avert a recession.

Citigroup Inc. and Wells Fargo & Co. led bank shares higher after Credit Suisse Group upgraded the industry on valuations, growth prospects and lower interest rates. General Motors Corp. gained after the world's largest carmaker said it plans to use 25 percent more Chinese-made parts to cut costs.

Standard and Poor's 500 Index futures expiring in December advanced 17.1 to 1,488.5 as of 8:53 a.m. in New York. Dow Jones Industrial Average futures increased 132 to 13,465. Nasdaq-100 Index futures rose 25.75 to 2,126.25.

Bernanke said policy makers must decide whether ``renewed turbulence'' in financial markets has shifted the risks between growth and inflation, signaling the Fed's concern that credit- market losses may be undermining the broader economy.

``It is telling you that it's likely to cut pretty aggressively over the next six months,'' said Jason Trennert, chief investment strategist at Strategas Research Partners in New York.

`Balance of Risks'

Officials must ``judge whether the outlook for the economy or the balance of risks has shifted materially'' when they meet next month, Bernanke said in a speech in Charlotte, North Carolina, late yesterday. The outlook has been ``importantly affected over the past month by renewed turbulence in financial markets.''

Reports today showed consumer spending rose less than forecast in October and incomes increased at the slowest pace in six months, adding to concern the economy will slow.

Citigroup, the largest U.S. bank, added $1.30 to $33.60. Wells Fargo, the second-biggest U.S. mortgage lender, advanced $1.16 to $31.70. Bank of America Corp., the second-biggest U.S. bank, increased $1.12 to $45.75.

Credit Suisse raised its recommendation on global banks to ``benchmark'' from ``underweight.'' Global economies will avoid a hard landing, strategists including Andrew Garthwaite wrote in note published today.

Morgan Stanley

The report comes after financial institutions, which have written down more than $65 billion for debt-related losses, face higher credit costs related to the collapse of the U.S. subprime mortgage market. The fall in value of subprime assets globally may reach $400 billion, Deutsche Bank AG analysts wrote Nov. 12.

U.S. Treasury Secretary Henry Paulson is negotiating an agreement with banks to stem a surge in foreclosures by fixing interest rates on loans to subprime borrowers, according to people familiar with a meeting he led yesterday.

Citigroup, Wells Fargo and Washington Mutual Inc. executives attended, said a person present, who spoke on condition of anonymity.

Morgan Stanley $1.16 to $53.50 after the second-biggest U.S. securities firm ousted co-President Zoe Cruz, Wall Street's highest-paid female executive, three weeks after the firm disclosed $3.7 billion of losses on mortgage-related securities at the division she oversaw.

General Motors rose 44 cents to $29.20. The company plans to boost spending on Chinese-made parts 25 percent a year until 2010 because of lower production costs and China's rising vehicle sales.

The automaker ships about 20 million parts a month from China, including electronics, wheels and sun visors, Bo Andersson, GM's purchasing chief, told reporters in Beijing today. He declined to say how much the company spends on Chinese-made parts each year.

Dell, Apple

Dell Inc. retreated $2.79 to $25.35. The world's second- largest personal-computer maker reported third-quarter profit yesterday of 34 cents a share, missing the estimate of 35 cents in a Bloomberg survey of analysts. Chief Executive Officer Michael Dell said he would boost spending to expand into new countries and retailers. Goldman, Sachs & Co. removed the stock from its ``Americas conviction buy'' list, saying the improvement in the company's performance ``is smaller and more gradual than we had been expecting.''

Apple Inc., the maker of the iPod music player, increased $2.77 to $187.06. China Mobile Ltd., the world's largest wireless-phone operator by subscribers, said it is still in discussions to offer Apple's iPhone handset, denying a newspaper report that talks between the two companies have ended.

Tiffany

Tiffany & Co., the world's second-largest luxury-jewelry retailer, rose $2.25 to $51. Third-quarter profit rose more than analysts estimated as demand for new products and tourist spending boosted revenue and the company recorded a gain from the sale of its main Tokyo store.

Energy companies including ConocoPhillips, Occidental Petroleum Corp. and Exxon Mobil Corp. fell as crude oil futures dropped below $90 a barrel for the first time since Oct. 31.

Bernanke's comments yesterday echoed Fed Vice Chairman Donald Kohn, who Nov. 28 acknowledged the threat to spending from reduced access to credit. The Fed in October said growth and inflation risks were ``roughly'' balanced. Kohn's remarks stoked investors' expectation the Fed, which lowered interest rates at its past two meetings, will do so again on Dec. 11.

The 0.2 percent increase in consumer spending was less than the 0.3 percent gain forecast by economists in Bloomberg News survey. The Commerce Department said incomes also rose 0.2 percent, half the pace forecast by economists.

A report at 9:45 a.m. from the National Association of Purchasing Management-Chicago may show the pace of business activity improved this month. The group's barometer rose to 50.5 from 49.7 in October, according to the Bloomberg survey. Readings greater than 50 signal growth.

To contact the reporters on this story: Andreas Hippin in Frankfurt at ahippin@bloomberg.net. Elizabeth Stanton in New York at estanton@bloomberg.net

Last Updated: November 30, 2007 08:54 EST