The Dow industrials and the S&P 500 rose on Thursday as news the Obama administration could request more money to shore up ailing banks sent financial shares higher, offsetting declines in healthcare companies. Banks, whose health has been a concern for investors and pulled the market to 12-year lows on Monday, were a standout.

Shares of Bank of America gained 8 percent to $5.57 and J.P. Morgan climbed 8.5 percent to $23.57. The KBW banks index rose 6.6 percent. There is "what looks like possibly a short-cover in financials," said Terry Morris, portfolio manager at National Penn Investors Trust Company in Reading, Pennsylvania, referring to the reversal of bets that a stock will fall.

The Dow Jones industrial average gained 36.56 points, or 0.50 percent, to 7,307.45. The Standard & Poor's 500 Index rose 2.87 points, or 0.38 percent, to 767.77. The Nasdaq Composite Index dropped 4.10 points, or 0.29 percent, to 1,421.33. The S&P Healthcare index slid 3 percent.

Copyright Reuters, 2009