Updated at 12:00 p.m., Thursday, January 31, 2008
Stocks rebound despite vulnerable financial sector
By TIM PARADIS
Associated Press Business Writer
The day's trading was a microcosm of the entire month, with the Dow first falling more than 190 points, and then by late afternoon, soaring more than 250. It capped a January that saw frequent triple-digit moves in the Dow as investors alternately anguished about the fallout from the housing and mortgage crisis and celebrated any news that indicated the damage might limited.
Still, the major indexes ended the month with heavy losses. The Fed's 1.25 percentage points in interest rate cuts, designed to stave off a recession, ultimately gave Wall Street some reassurance that the economy might soon show signs of recovery.
According to preliminary calculations, the Dow rose 207.53, or 1.67 percent to 12,650.36.
For the month, the Dow lost 4.63 percent — its worst January since losing 4.84 percent at the start of 2000.
Broader stock indicators also jumped today. The Standard & Poor's 500 index rose 22.66, or 1.67 percent, to 1,378.48, and the Nasdaq composite index rose 40.86, or 1.74 percent, to 2,389.86.
The rebound came even as reports on sluggish consumer activity and higher jobless claims reflected weakness in the economy.
