US stocks vaulted yesterday as takeover news and rate-cut speculation
overshadowed jitters about tighter credit markets.
In closing trading, the 30-stock Dow Jones industrial average rose 145.27, or
1.11 percent, to 13,236.13. The Standard & Poor's 500 index rose 16.95, or
1.17 percent, to 1,464.07, and the Nasdaq composite index rose 31.50 or 1.25
percent, to 2,552.80.
Online brokers TD Ameritrade and E-Trade Financial Group were reportedly in
merger talks to create a company valued at as much as 20 billion dollars.
Investors appeared satisfied that the Fed's move Friday to lower the discount
rate, or the rate it charges banks to borrow money, by a half-percentage-point
is helping to keep the markets liquid.