Stocks Gain at Open After Yesterday's Plunge

...And if you have faith that the story won't change by 4:30, you probably fell hard for that 'bridge in Brooklyn' bubble
By Kevin Spak,  Newser Staff
Posted Oct 16, 2008 8:57 AM CDT
Trader Gregory Rowe works on the floor of the New York Stock Exchange Wednesday, Oct. 15, 2008.   (AP Photo/Richard Drew)
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(Newser) – Stocks saw a modest bounce at the open this morning, with the Dow up 42 points after a half-hour, following yesterday’s titanic losses, the Wall Street Journal reports. The S&P and Nasdaq rose 0.5% and 1.32% respectively. Panic was staved off by some sound economic data, as new jobless claims dropped by 16,000 last week, beating analyst estimates, and several key lending rates declined.

It was a busy day for earnings reports, with Citigroup beating expectations on a $2.8-billion net loss, and Merrill Lynch's losses climbing to $5.2 billion. Both stocks rose about 4% in pre-market trading. Yesterday saw the Dow drop 733 points, its second-biggest drop ever.