Late Reversal Leads to Gains

Off big early on Lehman, worries, Dow finishes session up 164.79
By Nick McMaster,  Newser Staff
Posted Sep 11, 2008 3:39 PM CDT
Merrill Lynch shares were off big as investors continued to worry about companies with big stakes in risky mortgages.   (AP Photo)
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(Newser) – The markets saw gains late in the day today despite large losses in the financial sector, MarketWatch reports. Lehman Brothers fell another 41.9% as traders deemed its survival plan ineffective. But falling oil boosted industrial and transport shares, and the Dow closed up 164.79 at 11,43371. The Nasdaq gained 29.52, to 2,258.22, and the S&P 500 rose 17.01 to 1,249.05.

Oil fell $1.71, continuing a recent slide that has it almost back to $100 a barrel. Fuel-intensive stocks saw gains: General Motors jumped 11.4%, construction giant Caterpillar gained 3%, and railroad operator CSX rose 10.7%. Financials were mixed as Lehman continues to flounder—Merrill Lynch closed down 16.1%, but AIG and WaMu clawed out of the red to modest gains by day’s end.