AP: …The Dow Jones industrial average shifted between modest losses and gains a day after its record 936-point jump.
Profit-taking started creeping into the market after the Dow surged more than 400 points at the opening, and it was expected that some investors would take some money out of the market after such a massive gain. Moreover, it was anticipated that Wall Street would continue to see jittery trading in the weeks and perhaps months ahead because of worries about the weak economy.
AP: Wall Street fluctuated but largely extended its big advance Tuesday as investors reacted enthusiastically to the U.S. government’s plans to spend $250 billion to buy stock in private banks. The Dow Jones industrial average rose about 120 points a day after its record 936-point jump.
AP: The Dow Jones industrial average is up more than 375 points in early trading today on top of yesterday’s 936-point jump. Wall Street is gearing up for another surge with investors encouraged by the U.S. government’s plans to spend $250 billion on buying stock in private banks.
From WSJ: President Bush announces plan for U.S. government to buy stocks in banks. Bush says equity purchases are an “essential, short-term” measure. FDIC to guarantee most new debt issued by banks, expand insurance.
So maybe not all was revealed. Still awaiting the details…
Earlier: All will be revealed at 8:30 8:02…
AP: The Bush administration will spend $250 billion this year to purchase stock in banks and take a number of other bold steps in an effort to combat a global credit crisis that is threatening to push the country into a deep recession, industry and government officials say.
President Bush was scheduled to announce the new initiatives early Tuesday after executives of the country’s biggest banks were summoned to a remarkable meeting at the Treasury Department on Monday. Treasury Secretary Henry Paulson basically told the bank CEOs that they had to accept the government stock purchases for the good of the U.S. economy.
The administration plans to spend $250 billion of the $700 billion government rescue program passed by Congress on Oct. 3 to make stock purchases this year. The first purchases will be in nine large banks, officials said. The industry and government officials spoke on condition of anonymity because the details were yet to be formally released.
But even though Bush hasn’t spoken yet the markets have responded:
- Japan Has Biggest Gain In Its History
- Europe Extending Rally After Its Biggest One-Day Gain Yesterday
- US Futures Up
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