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Dow Up 397 on Positive News

Financials lead as government moves to help banking giant

By Nick McMaster, Newser Staff

Posted Nov 24, 2008 3:22 PM CST

(Newser) – Stocks rallied today in a vote of confidence for the $326 billion Citibank rescue plan and Barack Obama’s team of economic advisers, MarketWatch reports. Combined with Friday's surge, the rally was the largest 2-day jump in over 20 years. The Dow rose 396.97 points to close at 8,443.39. The Nasdaq surged 87.67, closing at 1,472.02, and the S&P 500 gained 51.78 points, settling at 851.81.

Financials led the charge, with Bank of America, Morgan Stanley, and Goldman Sachs shares all seeing at least 25% gains, while battered insurers like Genworth Financial and Hartford Financial also recouped some of last week’s losses. Though pleased with the markets' response, analysts pointed out that recent day-of rallies marking the announcement of rescue efforts have so far all fizzled shortly after.

[Images (3)]

[Quotes (1)]

Trader Stephen McSherry, center, and a colleague, smile as they work on the floor of the New York Stock Exchange in this undated file photo. (AP Photo/Richard Drew)

Traders gather at the post that handles Citigroup on the floor of the New York Stock Exchange in this undated file photo. (AP Photo/Richard Drew)

President-elect Barack Obama speaks during a news conference in Chicago, Monday, Nov. 24, 2008. (AP Photo/Charles Dharapak)

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We have a big event that everyone liked moving the financials today, but there's really been no consistency in the sector.
- Brian Belski, Merrill Lynch

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Dow Up 397 on Positive News