Citigroup Profits Lift Markets

Citigroup expected a profit for the first two months of the year before one-time charges. Investors yearning for the good news snapped up stocks sending the Dow up more than 200 points to 6750. Meanwhile, Nasdaq surged nearly 50 points to 1317.

On the upside

The cost of insuring loans dropped for Citigroup (NYSE: C) as its outlook dramatically improved. Banking stocks rose with shares of Bank of America (NYSE: BAC) and Wells Fargo (NYSE: WFC) joining the rally.

4th quarter sales and profits rose for Kroger (NYSE: KR), the nation's largest grocery store chain.

United Technologies (NYSE: UTX) announced plans to cut 11,600 jobs while lowering its 2009 outlook.

The casino sector also joined the rally. Shares of Wynn Resorts (Nasdaq: WYNN) and MGM Mirage (NYSE: MGM) climbed sharply.

On the downside

Shares of Comtech Telecommunications (Nasdaq: CMTL) tumbled after the equipment maker posted lower revenues and earnings.

Unmanned aircraft maker AeroVironment (Nasdaq: AVAV) lowered its revenue targets for 2009.

In the broad market, advancing issues overwhelmed decliners by a margin of 8 to 1 on the NYSE and by more than 6 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks climbed 16 points to 359.