Stocks Rally on GDP Revision

MBIA's jump leads insurers higher, and lower energy prices power big gains
By Nick McMaster,  Newser Staff
Posted Aug 28, 2008 3:15 PM CDT
Traders gather at a post on the floor of the New York Stock Exchange.   (AP Photo)
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(Newser) – Stocks rallied today as MBIA led gains for bond insurers and the news of an upward revision to the second-quarter US gross domestic product brightened investor sentiment, MarketWatch reports. The Dow rose 212.67 to close at 11,715.18. The Nasdaq gained 29.18, closing at 2,411.64, and the S&P 500 climbed 19.01 to settle at 1,300.67.

Crude oil reversed three days of gains and ended down $2.56 as it remained uncertain whether Tropical Storm Gustav would hit oil production in the Gulf of Mexico. MBIA rallied 34.7% after showing its health by striking a deal to reinsure billions in bonds by Financial Guaranty Insurance. MBIA rivals Ambac Financial and MGIC Investment also rose on the news.