Markets Rebound As Oil Drops

The markets rebounded during the midday as oil prices continued to decline and investors anticipate another rate cut by the Federal Reserve.  The Dow soared 138 points to 8517 while Nasdaq added 7 points to 1559.

On the upside

Shares of Fifth Third Bancorp (Nasdaq: FITB) and Huntington Bancshares (Nasdaq: HBAN) surged after the regional banks applied to participate in the government capital infusion program.

B/E Aerospace (Nasdaq: BEAV) reported higher third quarter earnings that topped analyst estimates as sales in the company's corporate jet unit rose.

Dillard's (NYSE: DDS) shareholders Barington Capital Group and Clinton Group demanded the ouster of the retailer's management team including chief executive William Dillard II.

On the downside

Analysts cited cardiovascular side effects to Savient Pharmaceuticals' (Nasdaq: SVNT) gout treatment Puricase for advocating caution.

CNA Financial (NYSE: CNA) blamed heavy investment losses for swinging to a third quarter loss prompting its majority shareholder Loews (NYSE: L) to announce a $1.25 billion cash infusion into the commercial insurer.

JPMorgan analyst Himanshu Patel downgraded auto parts supplier ArvinMeritor (Nasdaq: ARM) citing declining demand from European commercial truck companies.

In the broad market, declining issues outpaced advancers by a margin of 5 to 3 on the NYSE and by more than 7 to 5 on Nasdaq.  The Russell 2000 which tracks small cap stocks eased a fraction to 470.