Stocks climbed to post modest gains today after a plunge early in the session. Financials fell early after AIG said its credit-derivatives portfolio lost $4.88 billion, significantly more than the company had estimated in December, reports the Wall Street Journal. The Dow closed up 57.88 at 12,240.01, the Nasdaq up 15.21 at 2,320.06, and the S&P 500 7.82 at 1,339.11.
The Dow edged back up, helped along by GM's and Home Depot, as financials did poorly. "We're still in a defensive crouch with our portfolio," said one manager. Yahoo shares rose following the company's rejection of Microsoft's $45 billion bid. Before the bell, Dow Jones said Bank of America and Chevron will replace Honeywell and Altria in the industrials index, effective next Tuesday.