Dow Rallies Back, Financials Lead The Way

The Dow briefly moved into positive territory after trading down over 300 points earlier. Financial are leading the way. Short covering in the heavily beaten-up sector is likely contributing to the move.

The recent aggressive rate cuts, government stimulus and potential bailout of bond insurers MBIA Inc. (NYSE: MBI) and Ambac Financial (NYSE: ABK) has shorts locking in gains.

Stocks: Merrill Lynch (NYSE: MER), Citigroup (NYSE: C), Bear Stearns (NYSE: BSC), Goldman Sachs (NYSE: GS), Wachovia (NYSE: WB), Bank of America (NYSE: BAC).

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