Wall Street rallies, Dow ends up more than 400 points

UPDATED NEW YORK (AP) -- It was a dramatic late-session recovery for stocks after a report that the federal government is considering creation of a new entity to take over banks' bad debt. The idea, said to be considered by Treasury Secretary Henry Paulson, is being likened to the Resolution Trust Corporation used in response to the S&L failures in the 1980s.

Based on preliminary data, the Dow gained 410 points to 11,019.

The S&P added 49 points to 1,206.

And the Nasdaq composite rose 100 points to 2,199.

Advancing issues topped decliners by a more than 2 to 1 margin.

NYSE volume came to 10 billion shares. Nasdaq stock market volume was 3.9 billion shares.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


NEW YORK (AP) -- Wall Street has ended a volatile session sharply higher after a stunning late-session turnaround that sent the Dow Jones industrials up about 400 points. The big comeback followed a report that the federal government may create an entity that will take over banks' bad debt.

The report on CNBC said Treasury Secretary Henry Paulson is considering the creation of an entity like the Resolution Trust Corp. that was set up during the savings and loan crisis of the late 1980s and early 1990s.

Investors have been cheered by the notion of a huge federal intervention like the establishment of RTC to acquire the mortgage debt that has hobbled financial institutions and led to the intense volatility in the markets this week.

According to preliminary calculations, the Dow is up about 401 at the 11,010 level.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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