Stocks Rebound on Renewed Bailout Hopes

Turning to economic data, the Bureau of Economic Analysis released its final reading on second-quarter gross domestic product, downwardly revising the figure to show growth of 2.8% from April to June. The preliminary number had been 3.3%.

Meanwhile, the Federal Reserve said it has extended the agreements already in place with other central banks to further boost the liquidity of the money markets. Policymakers said they have authorized a $10 billion increase in the Fed's temporary swap facility with the European Central Bank and a $3 billion boost in its line with the Swiss National Bank. In total, the changes add $13 billion to the existing $277 billion in temporary reciprocal currency arrangements with other central banks.

Over in commodities, the price of crude oil was down $1.13 to $106.89 a barrel. Gold rose $6.50 to $888.50 an ounce.

Longer-dated U.S. Treasury securities were rising in price. The 10-year was up 4/32, yielding 3.84%, and the 30-year was adding 26/32 to yield 4.36%. The dollar was lower vs. the yen and pound but gaining on the euro.

Overseas exchanges were broadly weaker. The FTSE in London and the DAX in Frankfurt were edging downward, and the Nikkei in Japan and the Hang Seng in Hong Kong finished with losses.

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