Optimism Lifts Markets

Optimism that the financial services sector may be improving lifted the markets higher during the midday with the Dow surging 137 points to 8283. Nasdaq soared 24 points to 1780.

On the upside

Charles Schwab (Nasdaq: SCHW) told Barron's that it expects assets to increase 8% to 10% per year.

IBasis (Nasdaq: IBAS) received an all cash buyout offer from majority shareholder Royal KPN for $1.55 per share.

Robert W. Baird upgraded First Midwest Bancorp (Nasdaq: FMBI).

On the downside

American Dairy (NYSE: ADY) forecast 2009 revenue well below analyst expectations.

CapitalSource (NYSE: CSE) will offer 17.5 million shares of common stock and $300 million in senior notes to raise funds.

Oppenheimer downgraded Compass Minerals (NYSE: CMP).

In the broad market, advancing issues outpaced decliners by a margin of more than 3 to 1 on the NYSE and by 5 to 3 on Nasdaq. The Russell 2000 which tracks small cap stocks climbed 6 points to 487.