Updated from 9:15 a.m. EDT
Stocks in New York opened higher Thursday as the prospect of a quick bailout for financial firms trumped a gloomy earnings forecast from
and discouraging economic data.
Dow Jones Industrial Average
was up 80 points at 10,906, and the
climbed 7.2 points to 1193. The
added 16 points to 2171.
On Wednesday, the three major indices finished narrowly mixed after a day of erratic trading. Investors were focused on Treasury Secretary Henry Paulson's $700 billion bailout plan for the financial sector.
Speaking Wednesday evening in Washington, D.C.,
called for a quick approval of the Treasury's plan and warned the economy would face a recession if the package were not approved. Bush called an emergency meeting with presidential candidates John McCain and Barack Obama, as well as certain members of Congress, to work out a plan to pass the bill.
After Bush's speech, Rep. Barney Frank, chairman of the House Financial Services Committee, told
that he believed the bill would pass.
Back on Wall Street, harried bank
was approaching private equity companies, including
, about a potential takeover, according to a report in the
Wall Street Journal
lowered its third-quarter profit forecast and suspended its stock-buyback program, citing weakness in the financial markets.
Elsewhere, shareholders in
are scheduled to vote on a merger between the two airlines, according to a report by the
As for corporate earnings, athletic apparel maker
that increased year over year and bested the Street's estimates.
In analyst actions, Stifel Nicolaus initiated coverage of the airlines, assigning buy ratings to United parent
and American parent
garnered a hold rating from Stifel.
Looking at the day's economic data, the Census Bureau reported August durable-goods orders fell by 4.5%, a far wider decline than the 1.3% drop expected by economists and down from a 0.8% increase in July. The Department of Labor reported that jobless claims for the week ended Sept. 20 came in at 493,000, ahead of analyst forecast of 450,000 and up from 461,000 in July.
A bit later, the Census bureau also is slated to report on new-home sales for August.
The price of crude oil was down $1.85 to $103.88 a barrel. Gold was down $7.30 to $887.70 an ounce.
Longer-term U.S. Treasury securities were rising in price. The 10-year was up 10/32 to yield 3.78% and the 30-year was gaining 1-2/32, yielding 4.35%. The dollar was weakening vs. its major foreign competitors.
Overseas, European exchanges such as the FTSE in London and the DAX in Frankfurt were gaining. In Asia, Japan's Nikkei and Hong Kong's Hang Seng finished with losses.