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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

(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.

Trader Gregory Rowe works on the floor of the New York Stock Exchange Wednesday, Oct. 15, 2008.
Trader Gregory Rowe works on the floor of the New York Stock Exchange Wednesday, Oct. 15, 2008.   (AP Photo/Richard Drew)
A trader and specialist work on the floor of the New York Stock Exchange, Wednesday, Oct. 15, 2008.
A trader and specialist work on the floor of the New York Stock Exchange, Wednesday, Oct. 15, 2008.   (AP Photo/Richard Drew)
Traders work on the floor of the New York Stock Exchange, Tuesday Oct. 14, 2008.
Traders work on the floor of the New York Stock Exchange, Tuesday Oct. 14, 2008.   (AP Photo/Richard Drew)
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I'm pretty sure that if I go all in right now, I'll be better off in the next six months, but boy, I'll lose some sleep. - John Wilson, co-director of equity strategy at Morgan Keegan

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