Stocks Rebound on Renewed Bailout Hopes
09/26/08 - 04:41 PM EDT
TSC Staff
Updated from 3:38 p.m. EDT
Stocks on Wall Street finished at session highs Friday as investors continued to weigh the possibility of a financial-sector bailout and the implications of JPMorgan Chase's (JPM Quote - Cramer on JPM - Stock Picks) acquisition of Washington Mutual (WM Quote - Cramer on WM - Stock Picks). The Dow Jones Industrial Average, down more than 100 points at the outset, went positive and finished higher by 127.07 points, or 1.1%, at 11,143.13. The S&P 500 also rebounded to finish up 4.09 points, or 0.3%, at 1213.27. The Nasdaq Composite was the weakest performer, falling 3.23 points, or 0.2%, to 2183.34. Somewhat encouraging for the market were comments from President Bush, who said that elected officials would find common ground and arrange a rescue for the financial system. "We will rise to the occasion, where Republicans and Democrats will come together and pass a substantial rescue plan," he said. On Thursday, the three major indices rallied sharply on the expectation that Congress would quickly pass Treasury Secretary Henry Paulson's $700 billion bailout plan to purchase troubled assets from the financials. After Thursday's session ended, however, discussions on Capitol Hill about the bailout hit a rough patch as an alternative proposal by Republicans tabled efforts to pass the Paulson plan.
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