Buffett's Offer Cheers Investors

Stocks end mixed as billionaire offers to reinsure bonds
By Sam Gale Rosen,  Newser Staff
Posted Feb 12, 2008 3:40 PM CST
Billionaire investor Warren Buffett speaks in New York in this June 26, 2007 file photo. Billionaire investor Warren Buffett on Tuesday, Feb. 12, 2008 said that he has offered to help out troubled bond...   (Associated Press)
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(Newser) – Stocks ended mixed today, with the Dow up more than 100 points on Warren Buffet's offer to reinsure municipal bonds. "The important thing is that people are thinking we're now close to some kind of broader bailout of the bond insurers," an economist told the Wall Street Journal. The Dow rose 133.40 to 12,373.41, the Nasdaq fell 0.02 to 2,320.04, and the S&P 500 closed up 9.74 at 1,348.86.

"It tells investors that if Warren Buffett is not worried, hey, maybe I shouldn't be worried either," said a money manager. The rally fizzled somewhat by the end of the session. One researcher says that although the markets are "due for a rally," that "doesn't mean we're out of the woods regarding all the problems we face, like the threat of recession."