US rally - best start to a second quarter in 70 years

The U.S. stock market posted its best start to a second quarter in 70 years after Lehman Brothers Holdings Inc. and UBS AG said they are raising $19 billion to replenish capital. By raising capital, they might handle further credit losses. Lehman rose for the first time in seven days and UBS sparked a rally in Europe on expectations that financial firms will recover from $232 billion in mortgage-related losses.
Morgan Stanley climbed $3.15 to $48.85. The second-biggest U.S. securities firm said its so-called liquidity reserves have increased. The ISM’s index increased to 48.6 in March from 48.3 in February, signaling demand from overseas is sustaining manufacturing at a time when consumer spending and business investment are stagnating. Fifty is the gauge’s dividing line between expansion and contraction.
Today’s rally in the S&P 500 is also tied for the sixth- best beginning to any quarter since 1928, according to Bespoke Investment Group.