U.S. Stocks Erase Drop as Bank Rally Offsets Europe Woes

U.S. stocks erased declines as a rebound in financial shares overshadowed earlier concern over European leaders’ efforts to stem the debt crisis.

The Standard & Poor’s 500 Index rose less than 0.1 percent to 1,460.39 at 2:52 p.m. in New York, after dropping as much as 0.6 percent earlier. The Dow Jones Industrial Average gained 18.64 points, or 0.1 percent, to 13,598.11. Financial shares rallied 0.4 percent as a group, reversing a drop of 0.4 percent.

Stocks fell earlier as European leaders clashed on ways to stem the debt crisis and data from China and Germany signaled the slowdown is deepening.

To contact the reporter on this story: Jeff Sutherland in New York at jsutherlan13@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net

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