This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Stocks End Historic Week With Solid Gains

Updated from 4:12 p.m. EDT

U.S. stocks roared higher Friday following reports that the government was creating a sweeping fix for the financial crisis. A moratorium on short-selling by the Securities and Exchange Commission lent additional support to the rally.

The Dow Jones Industrial Average jumped 368.75 points, or 3.4%, to 11,388.44, and the S&P 500 gained 48.48 points, or 4%, to 1254.99. The Nasdaq added 74.80 points, or 3.4%, to 2273.90.

Despite large daily swings all week, the major indices were mainly unchanged for the week. The Dow was down 0.3%, the S&P 500 was up 0.1% and the Nasdaq tacked on 0.6%.

Financial stocks were off to the races Friday. Names including Washington Mutual (WM - Get Report), Wachovia (WB), Citigroup (C - Get Report) and Morgan Stanley (MS - Get Report) were all showing sizable double-digit gains.

WaMu finished the day up 42% to $4.25, and Wachovia surged 29% to $18.75. Citi tacked on 24% to $20.65, and Morgan Stanley finished up 21% to $27.21.

Early Friday, the Treasury said it would offer $50 billion from its Exchange Stabilization Fund to insure money-market mutual funds. A number of such funds have lately been under fire thanks to investment in bad debt from bankrupt Lehman Brothers and flailing insurer AIG (AIG - Get Report).

The Federal Reserve also said it would build on its liquidity programs to assist money-market funds, by taking steps that include buying short-term debt issued by Fannie Mae (FNM), Freddie Mac (FRE) and the Federal Home Loan Banks.

Speaking at a press conference Friday morning, Treasury Secretary Henry Paulson said that government-sponsored entities Fannie Mae and Freddie Mac would continue to buy mortgage-backed securities and support the mortgage market. He also said that the Treasury will expand its program to purchase mortgage-backed securities. He said that the cost of government intervention would reach the hundreds of billions of dollars and the administration would work over the weekend to iron out details of the plan.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs