* Dow and S&P 500 climb to new highs, banks rally
* Nokia's U.S.-listed shares drop after unveiling new phone
* Dow up 0.6 pct, S&P 500 up 1 pct, Nasdaq up 0.9 pct
By Ryan Vlastelica
NEW YORK, May 14 (Reuters) - U.S. stocks rose and extended a
recent rally on Tuesday, with the Dow and the S&P 500 hitting
new intraday highs as investors bet that the market's upward
momentum would keep going.
Gains were broad, with more than two-thirds of New York
Stock Exchange-listed companies' shares rising and almost 640
securities hitting 52-week highs, including Chevron Corp
and Visa Inc.
Growth-orientated stocks were among the day's biggest
advancers, with large-cap bank stocks leading the way. Bank of
America, up 2.6 percent at $13.32, was the Dow's biggest
gainer. Citigroup Inc rose 2.2 percent to $49.98. Goldman
Sachs advanced 3.4 percent to $154.67 while Wells Fargo &
Co added 1.1 percent to $38.63.
Wall Street has climbed for the past three weeks. The S&P
500 is up almost 16 percent so far this year, propelled in large
part by 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 keep using any market decline as a buying opportunity.
"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 rose 95.73 points,
or 0.63 percent, to 15,187.41. The Standard & Poor's 500 Index
climbed 15.65 points, or 0.96 percent, to 1,649.42. The
Nasdaq Composite Index advancedp 29.39 points, or 0.85
percent, to 3,468.18.
Earlier in the session, the Dow hit an all-time intraday
high at 15,191.60, while the S&P 500 reached an all-time
intraday high at 1,649.71.
The Dow's gains were limited by weakness in Caterpillar Inc
, down 0.8 percent at $87.56, and UnitedHealth Group
, off 0.8 percent at $61.90.
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 because of a drop in oil costs, the biggest decline since
December, and matching Wall Street's expectations.
U.S.-listed shares of Sony Corp jumped 10.3
percent to $20.83 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 5.3 percent to
$3.64. Research company Gartner said Nokia lost 5 percentage
points of market share in the first quarter, falling to 14.8
Solar power companies' shares fell on the day after Trina
Solar Ltd estimated lower panel shipments than a
previous outlook and said its results would be hurt by a foreign
currency exchange loss. The stock fell 7.3 percent to $5.50
while Yingli Green Energy slid 4.4 percent to $2.41.
Most corporate earnings have been better than expected this
quarter. With 90 percent of the S&P 500 companies having
reported results so far, 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 quarters.