Stocks Stage Dramatic Rebound
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U.S. stocks staged a dramatic turnaround Wednesday on reports of a possible rescue of troubled bond insurers.
The major indexes lost 3-4% in early trading on rumors of European bank troubles and European Central Bank comments that suggested the ECB won't be following the U.S. Federal Reserve's lead in cutting interest rates. But afternoon reports of a possible New York state-led rescue of bond insurers had the indexes sporting 1-2% gains by the close.
Apple was a big decliner, though, its shares down 10% on a much weaker than expected outlook.
Motorola fell 18% on ongoing troubles in its handset division that will lead to a loss this quarter.
Texas Instruments was up 4.6% on better than expected earnings and in-line guidance.
IBM, Intel and AMD were big winners, up 5-10%, while Google and Amazon were big decliners.
Microsoft was little changed ahead of its earnings report due out after the close on Thursday.
After the close, eBay gave up all of the day's 7% gains after lowering its current quarter outlook and announcing the retirement of CEO Meg Whitman. Qualcomm and Symantec were big winners after beating estimates.
The Nasdaq rose 24 to 2316, the S&P gained 28 to 1338, and the Dow surged 299 to 12,270. Volume rose to 7.48 billion shares on the NYSE, and 3.65 billion on the Nasdaq. Advancers led by a 24-9 margin on the NYSE, and 18-12 on the Nasdaq. Upside volume was 37% on the NYSE, and 56% on the Nasdaq. New highs-new lows were 31-408 on the NYSE, and 32-469 on the Nasdaq.