Dow +416.7 (+3.55%)
Nasdaq +86.4 (+3.98%)
S&P 500 +47.4 (+3.71%)
News That Moved the Market
Markets Surge. Today's gains were the most since 2003. The market was propelled higher after the Fed announced a new Term Security Lending Facility, allowing borrowers to pledge a large assortment of debt securities as collateral including privately rated AAA mortgage backed securities. The plan will increase liquidity and generate more value for mortgage backed securities, which have become a thinly traded asset. The plan includes also raising the swap lines with the ECB and Swiss National Bank, putting an extra $12 billion into the U.S. markets. The markets opened sharply higher, and finished strong, with financials (+7.4%) leading the charge. Volume was high and for any technical analysis followers, today's jumps may have also created a double bottom, a very bullish signal.
Wellpoint Causes Health Insurer Sell-Off. Wellpoint (WLP, -28.31%) slashed its full-year guidance to $5.76 - $6.01/share from $6.41/share. The new forecast was well below analysts' estimates and caused a massive sell-off of all the large health insurers; UnitedHealth Group (UNH, -15.2%) and Humana (HUM, -24.7%) finished with massive losses as well.
Quick Tics: Google's (GOOG, +6.3%) acquisition of DoubleClick was approved by European regulators…Crude-oil futures ended the session at a new record closing high of $108.75/barrel...Texas Instruments (TXN, -3.0%) lowered its first-quarter earnings forecast, the company's shares hit a 52-week low.
Notable Earnings (Full List Here):
Hot Topic (NASDAQ:HOTT) After Close
American Eagle Outfitters Inc (NYSE:AEO) Before Open
10:30 AM: Crude Inventories