Updated from 6:51 a.m. EDT
Stocks in New York opened higher Thursday, following a report that the
may take equity positions in U.S. banks. An encouraging earnings report from tech bellwether
also was bolstering sentiment.
Dow Jones Industrial Average
was gaining 127 points to 9385. It was one year ago today that the Dow closed at an all-time record high of 14,164. The
was up 12 points to 997. The
was better by 31 points at 1771.
On Wednesday, stocks traded chaotically before closing with losses after the
and central banks from other countries issued a coordinated cut in interest rates to alleviate the credit crunch.
Ahead of the new day's trading,
The New York Times
reported that the
may take ownership positions in U.S. banks to improve confidence in the financial system. The U.K. has pursued a similar plan by taking partial national ownership in
Royal Bank of Scotland
, a unit of
, had both proposed to
to be bought by the Treasury as part of its $700 billion financial-sector rescue plan.
Separately, the Fed said it would grant insurance company
up to $37.8 billion in exchange for fixed-income securities. The cash infusion comes on top of the $85 billion already lent out in September to keep the company from going bankrupt.
Among other insurers,
has recently discussed a potential merger with
, according to a report in
The Wall Street Journal
. The report said the discussions didn't lead to a deal, but that they indicate the strain the credit crunch has exacted from insurance firms.
was in discussions with other banks, perhaps
Bank of Nova Scotia
about potentially selling itself.
Financial stocks are again likely to hold the spotlight today as a three-week ban on short-selling of stocks in the sector lifted just before midnight. The
Securities and Exchange Commission
had implemented the rule on Sept. 19 as an emergency measure to help stem massive selling in bank stocks.
Looking at corporate earnings Dow component
its third-quarter results, saying it made a profit that increased year over year and topped analyst estimates.
As for economic data, initial jobless claims for the week ended Oct. 4 came in at 478,000, down from 498,000 the previous week but slightly above economists' estimates for 475,000 jobs lost.
In commodities, crude oil recently was up 8 cents at $89.03 a barrel. Gold was declining $17.40 to $889.10 an ounce.
Longer-dated U.S. Treasury securities were declining. The 10-year note was down 32/32 to yield 3.76%, and the 30-year was down 2/32, yielding 4.05%. The dollar was higher vs. the yen and tracking lower against the euro and pound.
Overseas, European indices, such as the FTSE in London and the DAX in Frankfurt, were mostly higher. Asia was mixed, as the Nikkei in Japan closed on the downside while the Hang Seng in Hong Kong finished with gains.