Nasdaq leads stock advanceBlue-chip average tiptoes higher, while tech index powers ahead following Wednesday's big rally.NEW YORK (CNNMoney.com) -- Stocks advanced Thursday morning, extending the previous session's big rally on hopes for a bond insurer bailout and reports that the White House and Congressional leaders have struck a deal for a stimulus package. The Dow Jones industrial average (INDU) added a few points. On Wednesday, the blue-chip indicator staged a late-session comeback, erasing a 326-point loss and climbing an additional 298 points by the close. The Standard & Poor's 500 (SPX) index was barely higher and the Nasdaq composite (COMP) gained 0.9 percent nearly an hour into the session. Both indexes had also staged late-session turnarounds on Wednesday. Stocks have had a miserable start to 2008, falling on fears that the credit and housing market crises will send the economy into a recession, if they haven't done so already. The declines racked up this year are an extension of the weakness from the last quarter of 2007. During Wednesday's session, the Nasdaq fell briefly into bear-market territory, defined as down by more than 20 percent from cyclical highs. The Dow and S&P 500 both fell as much as 18 percent from their all-time highs hit in October. That steep selloff set stocks up for a big bounce back that was triggered by reports that New York regulators and banks are seeking a means of raising money for struggling bond insurers. Those factors continued to support stocks Thursday, in addition to reports that the White House and Congressional Democrats have reached a deal as part of a $150 million stimulus package. (Full story). But early gains were countered by a report showing that December existing home sales saw the biggest drop in 25 years. (Full story). Earnings news. Nokia (NOK) reported a 44 percent jump in net profit and said that it had reached its goal of 40 percent market share in handset sales. The company also said that while it expects continued growth in 2008, first-quarter growth would slow from the last quarter of 2007. Shares jumped 6 percent. Capital One Financial (COF, Fortune 500) said late Wednesday that its fourth-quarter profit dropped due to charges associated with its mortgage business shutdown, but earnings topped estimates. Shares gained early Thursday. eBay (EBAY, Fortune 500) warned late Wednesday that first-quarter and 2008 results won't meet estimates. The online auctioneer posted fourth-quarter results that topped estimates, but investors focused on the warning, sending shares lower. Separately, eBay said that CEO Meg Whitman will step down in March, around the time of her 10-year anniversary with the firm, as had been expected. Treasury prices rallied, lowering the yield on the 10-year note down to 3.56 percent from 3.60 percent late Wednesday. Bond prices and yields move in opposite directions. In currency trading, the dollar fell versus the yen and euro. U.S. light crude oil for March delivery rose 76 cents to $87.75 a barrel on the New York Mercantile Exchange. COMEX gold rallied $24.40 to $907.50 an ounce. |
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