Eyes on DC, Stocks Lift at Bell

GE's cut estimates can't keep market down
By Kevin Spak,  Newser Staff
Posted Sep 25, 2008 8:55 AM CDT
Brian Dolan of Fortis Clearing Americas works on the floor of the New York Stock Exchange, Friday, Sept. 19, 2008, in New York.   (AP Photo/Henny Ray Abrams)
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(Newser) – 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.