An estimate cut from GE couldn’t keep the markets down this morning, as bailout optimism drove the Dow up 88 points, with the Nasdaq and S&P each raising 0.7%, the Wall Street Journal reports. GE slumped 4% premarket after cutting its third-quarter estimates, and predicted that “difficult conditions in the financial-services markets are not likely to improve in the near future.”
Bank of America, JP Morgan, and Citigroup all rose, as the bailout proposal began to take shape. “Optimism lies in the hope that we're nearing the end of the credit crisis and that Paulson's plan will help settle things down,” said one money manager. Crude oil prices also fell, with futures down $1.32 to $104.41 per barrel.