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Citigroup Inc. Message Board

  • bluecheese4u bluecheese4u Feb 22, 2008 4:38 PM Flag

    U.S. Stocks Rally in Final 30 Minutes, Gain for Week, on Ambac

    U.S. Stocks Rally in Final 30 Minutes, Gain for Week, on Ambac

    By Michael Patterson

    Feb. 22 (Bloomberg) -- U.S. stocks rallied in the final 30 minutes of trading, helping the market post its second straight weekly gain, as speculation bond insurer Ambac Financial Group Inc. may be rescued overcame concern bank earnings will falter.

    American International Group Inc. and JPMorgan Chase & Co. led the Dow Jones Industrial Average's 243-point turnaround. Ambac, which guarantees more than $500 billion in debt, climbed the most in three weeks after CNBC reported that bankers working on the bailout may announce a deal next week.

    ``There's some possibility that some of the heat on the financials because of dysfunctional credit markets will be removed,'' David Kotok, who helps oversee $900 million as chief investment officer of Cumberland Advisors Inc. in Vineland, New Jersey, said in an interview on Bloomberg Radio.

    The Standard & Poor's 500 Index climbed 10.58 points, or 0.8 percent, to 1,353.11, ending the week up 0.3 percent. The Dow average added 96.72, or 0.8 percent, to 12,381.02. The Nasdaq Composite Index increased 3.57, or 0.2 percent, to 2,303.35 About two stocks gained for every one that fell on the New York Stock Exchange.

    Stocks dropped earlier, led by financial shares, on concern that profits at brokerage firms will decline and lower demand for mortgages will curb growth at Fannie Mae and Freddie Mac.

    Ambac, the second-largest bond guarantor, climbed $1.48, or 16 percent, to $10.71 after CNBC on-air editor Charles Gasparino said the bailout may be announced on Monday or Tuesday, citing bankers working on the deal. Gasparino also said ``the entire deal could fall apart.''

    Ambac spokeswoman Vandana Sharma didn't immediately return a call seeking comment.

44.30+0.17(+0.39%)Jul 22 4:00 PMEDT