Stocks Open in Rebound Mode

Updated from 8:55 a.m. EDT

Stocks on Wall Street Friday opened higher ahead of a hotly anticipated congressional vote on the Treasury Department's rescue package for financial firms. A bank merger deal that will not require government assistance and an increasingly likely rate cut from the Federal Reserve were bolstering buying sentiment.

The Dow Jones Industrial Average climbed 100 points to 10,583, and the S&P 500 was better by 15 points at 1129. The Nasdaq added 33 points to 2010.

On Thursday, stocks finished with sharp losses as traders digested some bearish economic data and waited for signs that a $700 billion bailout package for the financial sector would pass the House of Representatives. The bill, slated to go before a vote Friday, is expected to pass the House by a narrow margin.

As investors awaited legislative aid, Wachovia (WB Quote) announced it has agreed to be sold to Wells Fargo (WFC Quote) in a $15.1 billion deal that Wells Fargo says will not require assistance from the Federal Deposit Insurance Corp. or any other government agency. The deal seems to negate another deal brokered by the FDIC Monday under which Citigroup (C Quote) agreed to acquire all of the banking subsidiaries of Wachovia.

Not all news from the financial sector was as rosy. Swiss bank UBS (UBS Quote) said it would cut 2,000 jobs as part of its reorganization efforts.

The Wall Street Journal reported that Washington Mutual CEO Alan Fishman won't stay on at JPMorgan Chase (JPM Quote), which acquired WaMu after it failed on Sept. 25.

In other board shakeups, mortgage packager Fannie Mae (FNM Quote) announced that former CEO Daniel Mudd will not be keeping his seat on Fannie's board.