Closing Bell Report
A report indicating that the federal government is considering creating an entity to handle the bad debt of banks boosted investor sentiment to send the markets soaring to close sharply higher with the Dow leaping 410 points to 11,020. Nasdaq skyrocketed 100 points to 2199.
On the upside
Conseco chief executive Jim Prieur (NYSE: CNO) reassured investors that the insurance company has adequate liquidity despite holding $19.3 million in securities from Lehman Brothers, $49.9 million from American International Group and $34 million from Washington Mutual.
First Marblehead (NYSE: FMD) anounced the departure of four executives and a director while the troubled student lender restructures.
On the downside
Merck & Co. (NYSE: MRK) terminated its collaboration agreement with SurModics (Nasdaq: SRDX).
Johnson & Johnson's (NYSE: JNJ) psoriasis treatment ustekinumab was more effective than Wyeth (NYSE: WYE) and Amgen's (Nasdaq: AMGN) Enbrel in a late stage clinical trial.
Bloomberg reported that the Bank of New York Mellon's (NYSE: BK) Institutional Cash Reserves fund dropped below $1 due to holdings in Lehman Brothers.
In the broad market, advancing issues outpaced decliners by a margin of nearly 3 to 1 on both the NYSE and on Nasdaq. The Russell 2000 which tracks small cap stocks skyrocketed 47 points to 724.
