Stocks Rebound on Renewed Bailout Hopes

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) acquisition of Washington Mutual (WM Quote).

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. ...