Goldman Sachs: Dow Winner

NEW YORK ( TheStreet) -- Goldman Sachs ( GS) was the winner among stocks of large U.S. banks on Tuesday, with shares rising 3.5% to close at $165.13.

Goldman's shares were propelled in part by the announcement by S&P Dow Jones Indices that the investment bank's stock would replace Bank of America ( BAC) among the 30 components of the Dow Jones Industrial Average , starting on Sept. 23.

Despite being booted from the Dow, shares of Bank of America rose 1% to close at $14.61, on a day of strength for the entire financial sector.

S&P Dow Jones Indices also said Visa ( V) would replace Hewlett-Packard ( HPQ), while Nike would replace Alcoa ( AA), among the Dow 30.

"The index changes were prompted by the low stock price of the three companies slated for removal and the Index Committee's desire to diversify the sector and industry group representation of the Index," S&P said in its announcement.

The broad indices on Tuesday all ended with solid gains, with several positive developments for investors. President Obama agreed to consider a proposal backed by Russia for the government of Syria to give up its chemical weapons. Syria also indicated willingness to cooperate. While it remains to be seen if the proposal will go anywhere, it buys plenty of time for the president and members of Congress to agree on a plan to avoid military action.

Following Monday's report of a 7.2% year-over-year increase in Chinese exports during August and Japan's upward revision of its second-quarter GDP growth rate to 3.8% from 2.6%, there was more good news out of Asia on Tuesday. China's industrial production for August was up 10.4% accelerating from the previous month's growth rate of 9.7%. China saw a 7.2% increase in exports during August from a year earlier, according to an announcement on Sunday by China's General Administration of Customs.

Retail sales in China were up 13.4% from a year earlier, accelerating from the July growth rate of 13.2%.

Japan's Cabinet Office on Monday revised its estimate of second-quarter gross domestic product growth for the world's third-largest economy to an annual rate of 3.8% from its preliminary estimate of 2.6%. Optimism in Japan was no doubt boosted over the weekend when Tokyo won its bid for the 2020 Summer Olympics.

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