Good grief billie, do you live on conspiracy? "Stocks End Higher in Late-Trading Rally By TIM PARADIS,Associated Press Posted: 2008-02-22 16:41:42 NEW YORK (AP) - Wall Street staged a dramatic turnaround Friday, shooting higher in the last half-hour of trading amid word that a bailout plan for troubled bond insurer Ambac Financial could be announced next week.
CNBC reported shortly before the closing bell that a plan to help shore up the finances of Ambac Financial Group Inc. could be announced on Monday or Tuesday. Ambac shares jumped on the report and finished up $1.48, or 16 percent, at $10.71.
The market's turnaround came after nearly two days selling. The Dow Jones industrial average had been down more than 100 points, but by the close, showed a 225-point reversal from its lows of the session.
"There's probably some validity to the rumors," said Jim Herrick, manager of equity trading at Baird & Co., referring to traders' speculation about Ambac. "With the overall financial crunch we've experienced, this brings new confidence in the sector."