Closing Bell Report
The markets extended yesterday's rally to close sharply higher with the Dow soaring 369 points to 11,388 as investors embraced the federal government's plan to purchase bad debt from banks. Nasdaq jumped 75 points to 2274.
On the upside
Despite a ratings downgrade by Moody's Investors Service, shares of Fifth Third Bancorp (Nasdaq: FITB) soared as the SEC banned the shorting of financial stocks and the government announced a rescue plan for troubled banks.
Although National City (NYSE: NCC) was removed from the Dow Jones Global Select Dividend 100 Index as well as the Dow Jones STOXX Global Select Dividend 100 Index, shares of the regional bank rose on the SEC's ban on short selling financial stocks and the government's plan to purchase bad debt from banks.
On the downside
Opexa Therapeutics (Nasdaq: OPXA) reported disappointing midstage trial results for its multiple sclerosis treatment Tovaxin.
Concerns that the financial crisis will negatively impact consumer spending weighed down shares of HSN (NYSE: HSN), which sells products through the television and on its website.
Moody's Investors Service warned that Ambac Financial's (NYSE: ABK) insurance unit may be downgraded.
In the broad market, advancing issues outpaced decliners by a margin of more than 7 to 1 on the NYSE and by nearly 7 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks leaped 30 points to 754.
