Financial Stocks Lead Rally on Wall Street
Stocks surged for the second straight day, with financial stocks leading the way. The Dow and S&P 500 gained more than 2%, while the Nasdaq jumped by more than 3%.
Investor sentiment was buoyed by the Fed’s Donald Kohn, who commented on the possibility of further rate cuts to ease problems related to the credit crunch (full story).
In economic news, the Fed’s Beige Book showed the U.S. economy expanded at a slower pace (full story).
The Wall Street Journal reported that Citigroup
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PowerRating) rebuffed a merger proposal from Bank of America
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PowerRating).
Wells Fargo
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PowerRating) announced it was taking a special provision of $1.4 billion to cover credit market losses.
Freddie Mac
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PowerRating) is issuing $6 billion of preferred stock to bolster reserves. The company also declared a Q4 dividend of $0.25 per share.
Dollar Tree Stores
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PowerRating) reported a rise in Q3 profit, gave Q4 guidance, and tightened its full-year outlook (read more).
Syntax-Brillian
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PowerRating) lowered revenue forecasts for Q2 and 2008 due to changing the company’s business model in China (read more).
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