Lehman Rebounds on Buyback Report

Updated from 1:56 p.m. EDT

Shares of Lehman Brothers(LEH Quote) rebounded after opening lower Wednesday, as investors digested a report that the firm bought back "large amounts" of its own capital during this week's swoon, according to The Wall Street Journal.

In early trading, Lehman's shares dipped as much as 9.1%. By the close, however, the stock traded 2.6% higher to $31.40, perhaps also in part due to an upgrade from Merrill Lynch (MER Quote). The stock has fallen as much as 24% this week as the firm mulls a plan to raise some $4 billion and prepares to report a quarterly loss later this month, the Journal reported on Tuesday.

Investors on Wednesday, however, responded positively to the buyback news, also reported in the Journal. The move ordinarily is viewed as a sign that management has confidence in its own business and level of liquidity. ...