* S&P 500 and Dow climb to new highs, banks rally
* Tesla Motors extends gains on raised sales outlook
* U.S. shares of Nokia drop after unveiling new phone
* Indexes up: Dow 0.5 pct, S&P 0.8 pct, Nasdaq 0.8 pct
By Ryan Vlastelica
NEW YORK, May 14 (Reuters) - U.S. stocks rose and extended a
recent rally on Tuesday, with the S&P 500 and Dow hitting a new
intraday high as investors bet that the market's upward momentum
Gains were broad, with more than two-thirds of New York
Stock Exchange-listed companies rising. Large-cap banks were
among the day's biggest advancers, with Bank of America
up 2.3 percent to $13.27 and Citigroup Inc up 2.1 percent
to $49.97. Goldman Sachs advanced 2.9 percent to $153.97.
Wall Street has climbed for the past three weeks, and is up
more than 14 percent so far this year, propelled by some
earnings that beat lowered estimates and the Federal Reserve's
easy monetary policy designed to stimulate the economy.
"We're riding a self-fulfilling prophecy of momentum.
There's no fundamental reason for today's move, other than the
continued easing by the Fed and momentum," said Paul Radeke,
vice president at Minneapolis-based KDV Wealth Management.
While some analysts expect the momentum to wane in the near
term, as equities haven't undergone a significant pullback this
year, many say that the long-term trend remains positive as
investors continue to use any market decline as a buying
"The sheer volume of cash coming in from the sidelines is
preventing any kind of correction, even though fundamentally we
seem to be getting overbought," said Radeke, who helps oversee
$400 million in assets.
The Dow Jones industrial average was up 73.83 points,
or 0.49 percent, at 15,165.51. The Standard & Poor's 500 Index
was up 12.92 points, or 0.79 percent, at 1,646.69. The
Nasdaq Composite Index was up 26.17 points, or 0.76
percent, at 3,464.96.
The market had been trading sideways for three sessions,
showing a gain of 0.07 percent as the winding down of the
quarterly earnings season and a light economic calendar have
left investors without a strong catalyst for further gains.
Economic data showed import prices slipped 0.5 percent last
month due to a drop in oil costs, the biggest decline since
December and matching Wall Street expectations.
U.S.-listed shares of Sony Corp jumped 9.2
percent to $20.63 after billionaire hedge fund investor Daniel
Loeb called on the company to spin off its lucrative
Nokia Corp unveiled a new version of its Lumia
smartphone line, but U.S.-listed shares fell 5.7 percent to
$3.62. Research company Gartner said Nokia lost 5 percentage
points of market share in the first quarter, falling to 14.8
Tesla Motors extended its rise following a gain of
40 percent last week after lifting its sales outlook. It climbed
2.8 percent to $90.16 and hit an all-time high. Green Mountain
Coffee Roasters, which like Tesla has been a favorite
of short-sellers, rose 3.8 percent to $80.32, its highest since
Most corporate earnings have been better than expected this
quarter. With 90 percent of the S&P having reported, 67.2
percent have topped earnings expectations, according to Thomson
Reuters data, which is even with the average over the past four
quarters. However, only 46.9 percent have beaten revenue
expectations, below the 52 percent average over the past four