LONDON (ShareCast) - US stocks stormed ahead Monday as credit rating agency Standard & Poor’s (S&P) elected not to downgrade the AAA credit ratings of the major bond insurers, MBIA and Ambac.

The pair led the market higher, with MBIA slightly outperforming its rival on news that S&P is no longer considering a downgrade; Ambac’s AAA rating remains under “negative outlook” at S&P.

MBIA said it will halt writing guarantees on asset-backed guarantees for six months and cancel its dividend as it seeks to get back on an even keel after suffering massively in the sub-prime lending crisis.

The Dow-Jones 30 advanced 189 points to close at 12,570 while the broader based S&P 500 put on 18 at 1,371. The tech-stock dominated NASDAQ Composite closed at 2,327, up 24.

Elsewhere, medical instruments group Boston Scientific was in good health on news that three of its products had received clearance from the US Food and Drug Administration (FDA), while cancer drug firm Genentech was higher after the FDA granted an accelerated approval for its breast cancer Avastin treatment.

Jewellery company Tiffany sparkled on rumours that luxury goods maker LVMH is considering bidding for it.

Alcoa was wanted as investors reasoned that it would benefit from the power disruptions in China and South Africa which have constrained production of aluminium.

Telephone network operator Qwest Communications made a connection with buyers by announcing plans to buy back shares.

Credit card company Visa said Monday that it estimates raising almost $18.8bn from its initial public offering, which would make it the biggest IPO in US history.

Fallers were few and far between but included financial stocks Citigroup, Freddie Mac and Fannie Mae, all of which were hit by adverse broker comment. Oppenheimer cut its earnings forecast for Citi by more than 70% while Goldman Sachs slapped a sell recommendation on mortgage lenders Fannie Mae and Freddie Mac.

Goldman was also bearish on other top Wall Street outfits Merrill Lynch, Lehman Brothers, Morgan Stanley, Bear Stearns and JP Morgan. Goldman Sachs itself shed a few cents.

The biggest faller among blue-chips was entertainment software company Electronic Arts, which crashed after launching a $2bn hostile takeover bid for rival Take-Two, publishers of the “Grand Theft Auto” computer games. Take-Two leapt by more than 50% to a level slightly above the $26 a share offer from Electronic Arts.

• News Channel