• Kohl's (NYSE:KSS) reported results of 63 cents a share, above Zacks estimates of 61 cents, on revenues of $4.1 billion, above Zacks projections of $4 billion

• Banking analyst Richard Bove strongly advised purchase of Bank of New York Mellon (NYSE:BK) shares, saying the firm's multiple should be twice current levels due to growth prospects

• Motorola (NYSE:MOT) is considering sale of its Home and Networks Mobility division as part of its turnaround plan. Analysts value the unit at $3-$5 billion

• Hewlett-Packard (NYSE:HPQ) said it agreed to acquire 3Com (NASDAQ:COMS) for $7.90 per share, in a deal valued at about $2.7 billion in cash. The company also posted preliminary fiscal fourth quarter results and raised 2010 guidance

• United Technologies (NYSE:UTX) agreed to purchase GE's (NYSE:GE) security business for $1.82 billion

• Reports said Microsoft's (NASDAQ:MSFT) new Bing search engine has been gaining market share against competing Google (NASDAQ:GOOG) and Yahoo (NASDAQ:YHOO)

• According to a WSJ report, News Corp's (NASDAQ:NWSA) Dow Jones is close to a sale of stake in its stock indexing unit, Stoxx Ltd, for $309 million

• Applied Materials (NASDAQ:AMAT) reported better-than-anticipated fiscal fourth quarter earnings of 13 cents, 10 cents above projections, on revenues of $1.53 billion, which topped estimates of $1.32 billion. The firm anticipates 30% 2010 revenue growth; layoffs of 1300-1500 over the next year are planned

• Clearwire (NASDAQ:CLWR) posted a third quarter loss of 43 cents a share, versus Zacks estimates of a 45 cents loss as revenues increased 13.2% to $68.8 million, slightly ahead of Zacks estimates of $68 million.  The firm maintained 2009-2010 guidance, and plans new $1.564 billion in equity financing

• Ralcorp (NYSE:RAH) reported earnings of $1.14 a share ex-items, versus Zacks estimates of $1.24, on revenues of $983.2 million, up 12.6% YoY, off Zacks estimates of slightly above $1 billion

The Dow Jones industrial average rose 96.28 points, or 0.96%, to close at 10,092.19.  The broader S&P 500 index jumped 10.23 points, or 0.94%, to 1,097.91 and the tech-heavy Nasdaq climbed 19.52 points, or 0.91%, to 2,176.32, its highest point since September 26, 2008.  Market breadth was positive, with advancing shares ahead of decliners by a margin of three-to-one.  Only five of the DJIA thirty declined in price.

After the close, iPhone maker Apple Inc. (NASDAQ:AAPL) and Texas Instruments (NYSE:TXN) reported better-than-estimated numbers, fuelling hopes for the technology industry.  Last week Google Inc. (NASDAQ:GOOG) and Intel Corp’s (NASDAQ:INTC) numbers had come in above expectations.

Although there were some jitters last week after some major banks reported higher loan losses during the quarter, expectations that companies across a broad range of industries would report numbers above projections kept the momentum going.   Nevertheless, companies could find it relatively easy to beat analyst’s lowered bars of expectations and then turn in splendid performance in the future quarters as the economy moves into a recovery mode.

This week is likely to be decisive with 13 of the Dow 30 and more than 130 of the S&P 500 slated to report their results.  The numbers could well be the fodder for the next rally – or a downward spiral – even as a call for a 10-15% correction has gone unmet.  This morning's lengthy list of key corporate results, however, continues to surprise on the upside, adding fuel to the rally's fire.

On Monday, the S&P 500 broke above the 1100 mark before retreating a little to settle at 1097, its highest close since October 2, 2008. All ten industry sectors rose, led by gains in basic materials (+1.7%), utilities (+1.4%), oil and gas (+1.2%) and consumer services (+1.2%). 

Caterpillar (NYSE:CAT), due to report its earnings today, led the gainers with a 6% jump as analysts upgraded shares of Bank of America (NYSE:BAC) and RBC Capital that took price targets on the stock to $65 per share.  American Express (NYSE:AXP), due to report after the close Thursday, climbed 2.3% after FBR lifted its price target on the firm to $37 from $25.  On the downside, General Electric (NYSE:GE) shares fell 1.5% as questions continued regarding the price of the 20% stake Vivendi owns in NBC Universal.

Today's market action will be interesting to watch to find how the better-than-expected results from Apple (NASDAQ:AAPL) and Texas Instruments (NYSE:TXN) are seen by the broader indices.  Both companies posted strong results, beating top and bottom line expectations. Apple (NASDAQ:AAPL) said results were helped by record quarterly sales of Macintosh computers and iPhones, permitting earnings of $1.82 on strong sales of $9.87 billion.  The shares hit an all-time high of $204.  TI (NYSE:TXN) also bettered projections, reporting strong demand across all business segments.  The company reported earnings of 42 cents a share, ahead of estimates of 39 cents, as revenues of $2.88 billion beat estimates of $2.82 billion, and presented a sequential quarterly gain of 17%.

Today’s list includes Coca-Cola (NYSE:KO), SanDisk (NASDAQ:SNDK), Caterpillar (NYSE:CAT), DuPont (NYSE:DD), Pfizer (NYSE:PFE), Untied Technologies (NYSE:UTX), Yahoo (NASDAQ:YHOO), State Street (NYSE:STT), and Bank of New York Mellon (NYSE:BK).

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Chinese Equity Funds list.

3 Excellent Picks

Dreyfus Greater China A (DPCAX) was incepted in May 1998 and seeks long-term capital appreciation. It may include invest in common stocks, preferred stocks and convertible securities, including those purchased in initial public offerings. It is non-diversified.

The fund primarily invests in stocks of companies that are principally traded in China, Honk Kong or Taiwan, derive at least 50% of their revenues from Greater China, or have at least 50% of their assets in Greater China.

Sino-Ocean Land Holdings Ltd., Zhuzhou CSR Times Electric Co. Ltd. and Bengang Steel Plates Co. Ltd. are among the fund’s top holdings.

AIM China A (AACFX) was incepted in March 2006 and seeks long-term growth of capital. It invests in China securities, including securities of companies in the U.S. and other countries with substantial exposure to China.

The fund does not expect to invest more than a quarter of its assets in debt securities. It may invest in initial public offerings of securities and hold a portion of assets in cash or cash equivalents, including shares of affiliated money market funds. Shareholders have to make a minimum initial investment of $1,000 to enter this Zacks#1 Rank (“Strong Buy") fund.

Some of the fund’s key holdings include PetroChina (PTR - Analyst Report), CNOOC Ltd. (CEO - Analyst Report) and China Life Insurance (LFC - Analyst Report)

ProFunds UltraChina Inv (UGPIX) seeks to provide daily investment results, before fees and expenses, that correspond to the performance of the Bank of New York Mellon China Select ADR Index.

The fund may use leveraged investment techniques and/or sampling techniques in seeking its investment objective. It is non-diversified.

This Zacks#1 Rank (“Strong Buy") fund distributes dividends annually. Its key holdings include China Mobile Ltd. (CHL - Analyst Report), China Life Insurance Co. Ltd. (LFC - Analyst Report) and PetroChina Co. Ltd. (PTR - Analyst Report).

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Chinese Equity Funds list.

3 Excellent Picks

Dreyfus Greater China A (DPCAX) was incepted in May 1998 and seeks long-term capital appreciation. It may include invest in common stocks, preferred stocks and convertible securities, including those purchased in initial public offerings. It is non-diversified.

The fund primarily invests in stocks of companies that are principally traded in China, Honk Kong or Taiwan, derive at least 50% of their revenues from Greater China, or have at least 50% of their assets in Greater China.

Sino-Ocean Land Holdings Ltd., Zhuzhou CSR Times Electric Co. Ltd. and Bengang Steel Plates Co. Ltd. are among the fund’s top holdings.

AIM China A (AACFX) was incepted in March 2006 and seeks long-term growth of capital. It invests in China securities, including securities of companies in the U.S. and other countries with substantial exposure to China.

The fund does not expect to invest more than a quarter of its assets in debt securities. It may invest in initial public offerings of securities and hold a portion of assets in cash or cash equivalents, including shares of affiliated money market funds. Shareholders have to make a minimum initial investment of $1,000 to enter this Zacks#1 Rank (“Strong Buy") fund.

Some of the fund’s key holdings include PetroChina (PTR), CNOOC Ltd. (CEO) and China Life Insurance (LFC)

ProFunds UltraChina Inv (UGPIX) seeks to provide daily investment results, before fees and expenses, that correspond to the performance of the Bank of New York Mellon China Select ADR Index.

The fund may use leveraged investment techniques and/or sampling techniques in seeking its investment objective. It is non-diversified.

This Zacks#1 Rank (“Strong Buy") fund distributes dividends annually. Its key holdings include China Mobile Ltd. (CHL), China Life Insurance Co. Ltd. (LFC) and PetroChina Co. Ltd. (PTR).

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Chinese Equity Funds list.

3 Excellent Choices

Dreyfus Greater China A (DPCAX) was incepted in May 1998 and seeks long-term capital appreciation. It may include invest in common stocks, preferred stocks and convertible securities, including those purchased in initial public offerings. It is non-diversified.

The fund primarily invests in stocks of companies that are principally traded in China, Honk Kong or Taiwan, derive at least 50% of their revenues from Greater China, or have at least 50% of their assets in Greater China.

Sino-Ocean Land Holdings Ltd., Zhuzhou CSR Times Electric Co. Ltd. and Bengang Steel Plates Co. Ltd. are among the fund?s top holdings.

AIM China A (AACFX) was incepted in March 2006 and seeks long-term growth of capital. It invests in China securities, including securities of companies in the U.S. and other countries with substantial exposure to China.

The fund does not expect to invest more than a quarter of its assets in debt securities. It may invest in initial public offerings of securities and hold a portion of assets in cash or cash equivalents, including shares of affiliated money market funds. Unit holders have to make a minimum initial investment of $1,000 to enter this Zacks#1 Rank (?Strong Buy?) fund.

Some of the fund?s key holdings include PetroChina (PTR), CNOOC Ltd. (CEO) and China Life Insurance (LFC)

ProFunds UltraChina Inv (UGPIX) seeks to provide daily investment results, before fees and expenses, that correspond to the performance of the Bank of New York Mellon China Select ADR Index.

The fund may use leveraged investment techniques and/or sampling techniques in seeking its investment objective. It is non-diversified.

This Zacks#1 Rank ("Strong Buy") fund distributes dividends annually. Its key holdings include China Mobile Ltd. (CHL), China Life Insurance Co. Ltd. (LFC) and PetroChina Co. Ltd. (PTR).

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Last Friday, State Street Corp. (STT) said that it paid $60 million to repurchase its own warrants. U.S. Bancorp and State Street are among the 10 major financial services companies to be permitted by the federal regulators last month to repay the bailout money.

In May this year, the Federal Reserve conducted a Stress Test and concluded that U.S. Bancorp did not need any additional capital buffer. The decision came after estimating the adequacy of the company’s capital base under a hypothetical two-year scenario, considering adverse economic conditions than actually expected.
 
During May 2009, U.S. Bancorp made a public offering of its common stock and senior notes. Last month, the company redeemed the $6.6 billion of preferred stock issued to the Treasury under the Capital Purchase Program of the Emergency Economic Stabilization Act of 2008. The repurchase of warrants and the redemption of the preferred stock, essentially indicate the company’s final exit from the government’s financial rescue program. This will not only reduce government intervention but also maintain a strong capital base.
 
Besides U.S. Bancorp, the other banks that are not required to raise capital according to the Federal Reserve include American Express (AXP), Bank of New York Mellon (BK), BB&T (BBT) and Goldman Sachs (GS). However, banks such as Fifth Third Bancorp (FITB), KeyCorp (KEY), Regions Financial (RF), Citigroup (C) and Wells Fargo (WFC) were asked to raise capital.
 
With a wide range of product offerings, USB remains well positioned for organic growth. Its strong retail banking franchise and leadership in payment processing will continue to create growth opportunities, going forward.
 
During the first quarter of fiscal 2009, U.S. Bancorp continued to experience a growth in loans and earnings assets, reflecting acquisitions. Furthermore, we expect the company to benefit from strategic acquisitions and expense management. However, the stressed residential real estate markets and the mortgage-related industries along with the continued impact of the U.S. recession on commercial and retail customers will continue to weigh on U.S. Bancorp.

Prior to the scheduled release of second quarter financial results on Wednesday, July 22, 2009, we maintain our Hold rating on the shares.

In May of this year, the Federal Reserve concluded that U.S. Bancorp did not need any additional capital buffer. The decision came after estimating the adequacy of the company's capital base under a hypothetical two-year scenario that involved economic conditions more adverse than actually expected.

Besides U.S. Bancorp, the other banks not required by the Federal Reserve to raise capital included American Express (AXP), Bank of New York Mellon (BK), BB&T (BBT) and Goldman Sachs (GS). However, banks such as Fifth Third Bancorp (FITB), KeyCorp (KEY), Regions Financial (RF), Citigroup (C) and Wells Fargo (WFC) were asked to raise capital.

U.S. Bancorp remains one of the more profitable large-cap banks in the industry, with a return on equity of 13.9% and a return on assets of 1.21% in 2008. With a wide range of product offerings, U.S. Bancorp remains well positioned for organic growth. Its strong retail banking franchise and leadership in payment processing should continue to create growth opportunities over time.

During May, U.S. Bancorp made a public offering of its common stock and senior notes. Last month, the company redeemed the $6.6 billion of preferred stock issued to the Treasury under the Capital Purchase Program of the Emergency Economic Stabilization Act of 2008. This will reduce government intervention while maintaining a strong capital base.

During the first quarter of fiscal 2009, U.S. Bancorp continued to experience a growth in loans and earnings assets, reflecting acquisitions. Going forward, we expect the company to benefit from strategic acquisitions and expense management. However, the stressed residential real estate markets and mortgage-related industries and the impact of the U.S. economic issues on commercial and retail customers will continue to overhang on U.S. Bancorp.

Prior to the scheduled release of second quarter financial results before market opens on Wednesday, July 22, 2009, we maintain our Hold recommendation on the shares.

• Goldman Sachs (NYSE:GS) added Discover Financial Services (NYSE:DFS) to its Conviction Buy List, taking off shares of Bank of New York Mellon (NYSE:BK)

• Goldman Sachs (NYSE:GS) posted positive comments ahead of Friday's forthcoming General Electric (NYSE:GE) numbers, saying it sees it earnings to beat Street estimates of 23 cents a share

• CIT Group (NYSE:CIT) warned of a possible "crisis" for 30,000 retailers should its failure to raise funds drive the firm into bankruptcy as it attempts to improve its near-term liquidity position

• Microsoft's (NASDAQ:MSFT) annual partner conference in New Orleans begins today, with reports expected on online software versions as well as plans for its "cloud" operating system, its next Office Suite software version, and pricing and plans for its Azure operating system

• Philips (NYSE:PHG), Europe's largest consumer electronics firm, surprised with second quarter earnings of $62 million, down 94% from a year ago, but ahead of Street estimates for a loss of $175 million, as well as offering optimistic comments of an improved second half helped by cost-cutting measures

• Rockwell Automation (NYSE:ROK) was upgraded by JP Morgan (NYSE:JPM), with a price target of $35, up from $29

The back-office securities servicing arm of Bank of New York Mellon says it has topped the $100 billion mark in exchange-traded fund assets. At that level, BNY Mellon Asset Servicing claims to be the largest U.S. custodian for ETFs in terms of funds serviced.

In a statement released Tuesday morning, the firm says that it now provides services to more than 350 separate funds. BNY Mellon's ETF services business has grown from a single portfolio with less than $1 billion in assets in the past decade, according to Joseph Keenan, managing director of BNY Mellon Asset Servicing.

He credited the group's climb to the top at least in part to the market's recent upswing. Longer term, Keenan noted the explosive growth in ETF popularity over the past several years. ETF services include custody, accounting and administration as well as transfer agency servicing.

"We will continue to invest in all aspects of this business from technology to client service so we can meet the growing needs of investment managers and contribute to the continuing success of our clients," said Keenan in a statement.

Yesterday, Wall Street responded with a yawn to Obama Administration's announcement that 10 of the largest banks could repay $68 billion of government bailout cash.  Although Treasury Secretary Geithner, appearing before the Senate Appropriations Committee, noted the repayment of the bailout money was a sign of "financial repair," stocks swung back and forth in a narrow range, signaling the much-expected announcement from the Treasury packed few surprises.  Technology stocks, buoyed by Texas Instruments' (NYSE:TXN) better-than-expected earnings and sales outlook, pushed Nasdaq higher while the Dow Jones Industrial Average and broad based S&P 500 index ended the day mixed.  The Tech-heavy Nasdaq rose 17.73 points, or 0.96%, to close at 1860.13.  The DJIA slipped about 0.1% to close at 8,763.06.  The S&P added 0.4% to close at 942.43. 

Some big financial institutions have been eager to escape increased federal involvement and the restrictions that come with being part of the Troubled Asset Relief Program.  Although the Treasury did not name the banks cleared to pay back the TARP funds, the ten institutions quickly confirmed they have been allowed to exit the government's financial assistance program.  Morgan Stanley (NYSE:MS), American Express (NYSE:AXP), JPMorgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS), Bank of New York Mellon (NYSE:BK), BB&T (NYSE:BBT), Capital One (NYSE:COF), Northern Trust (NASDAQ:NTRS), State Street (NYSE:STT) and US Bancorp (NYSE:USB) were cleared to pay back the rescue funds.  Commenting on the move, JP Morgan Chase & Co (NYSE:JPM) CEO Jamie Dimon noted, "Paying back TARP at this time is the right thing for JPMorgan Chase, and it's the right thing for our country."  Financial sector shares edged up 0.4%, with American Express (NYSE:AXP) topping the list of gainers on the DJIA with a 5% jump, as traders were relieved that the industry's rising rates of card delinquencies and the potential for increased attendant loan losses had not prevented government approval of its repayments.

Following Texas Instruments' (NYSE:TXN) improved guidance, semiconductor shares rallied with Advanced Micro Devices (NYSE:AMD) closing up 3.1%, Intel (NASDAQ:INTC) rising 3.4%, and National Semiconductor (NYSE:NSM) closing up 4.4%. According to a Bank of America (NYSE:BAC) analyst note, Microchip Tech (NASDAQ:MCHP) has been witnessing improved China orders.  BofA raised its price target on the company to $23.

Crude prices went beyond $70 per barrel on hopes a stronger economy will lift demand.  Dollar prices continued to remain under pressure.  Although concerns linger over the state of the world economy, commodities have recorded sharp gains recently as investors have increasingly turned towards crude to hedge against a weak dollar.  Yesterday's $35 billion auction of 3-year Treasuries met with strong demand, however, as a yield of 1.96% topped expectations, and the bid-to-cover ratio equaled 2.8%. Today's calendar is for $19 billion in 10-year notes, with $11 billion 30-years slated for tomorrow.  However, investors remain concerned that rising short-term interest rates will squeeze banking industry's net interest margins, in a sector that has already seen a 73% price run-up over the past three months.

Meanwhile, late Tuesday, the Supreme Court rejected an appeal from three Indiana state funds, consumer groups and others, clearing the way for the sale of most of Chrysler's assets to Italy's Fiat Group SpA. 

Afternoon sentiment will reflect release of the Fed's latest take on regional economic conditions, revealed in its Beige Book at 2:00 AM ET. The report is likely to recount the well-aired areas of economic weakness, namely, depressed housing markets, soft consumer demand, deteriorating employment opportunities, and downward price pressures. Indications of an economic recovery's "green shoots" of growth may help boost sentiment.

With the government's plan to sell $65 billion in debt this week, investors remain concerned that interest rates could be hiked sooner than expected.  Investors are also awaiting news from the Treasury Department, which is expected to announce which banks will be allowed to repay funds borrowed under the Troubled Asset Relief Program.  On Monday, some media reports suggested the US government will allow ten banks to pay back at least $50 billion in TARP funds.  The reports said JP Morgan Chase & Co (NYSE:JPM) is among the banks cleared to pay back TARP funds.  The list is also expected to include Goldman Sachs (NYSE:GS), American Express (NYSE:AXP), Bank of New York Mellon (NYSE:BK), Capital One (NYSE:COF) and State Street (NYSE:STT).  Countering interest rate hike expectations, however, were remarks which pointed out that the Fed has never begun raising interest rates before the unemployment rate, now at a 26-year high, has begun to fall.

Treasury yields continued higher yesterday, reflecting increased hope of an economic recovery.  The 2-year was up 12 basis points to 1.43% and the 10-year rose 5 basis points to 3.91%.  Commodities declined, with basic material sector shares falling 1.5%.  Crude prices continue to fall for the second day, easing 0.5% to $68.08 and copper was off 1.4%; gold prices dropped 1.1%. Alcoa (NYSE:AA) led the decliners on the DJIA with a 1.6% fall.  US Steel (NYSE:X) fell 3.7%, and Freeport-McMoRan (NYSE:FCX) declined 1.2%. Also those companies generating a large percentage of overseas revenues weakened on the stronger dollar, with DuPont (NYSE:DD) shares off 2.9%. Financials were the leading gainers on the DJIA, with American Express (NYSE:AXP) closing up 2.8%, JP Morgan (NYSE:JPM) rising 2.4%, and Bank of America (NYSE:BAC) registering a 1.7% advance.

Texas Instruments' (NYSE:TXN) second quarter revenue and earnings guidance and remarks from Intel (NASDAQ:INTC) that the first quarter represented a "bottom" in the PC market intensified hopes of an economic recovery.  Texas Instruments (NYSE:TXN) raised its revenue guidance to $2.3 billion to $2.5 billion from its prior view of $1.95 billion to $2.4 billion, and earnings per share view to 14 cents to 22 cents from its earlier view of 1 cent to 15 cents a share. 

Meanwhile, after the markets closed, the Supreme Court granted a stay in the sale of Chrysler's assets to Italian automaker Fiat.  The stay is expected to delay the bankruptcy proceedings and heighten nerves over the cost of automakers' bankruptcy in broad US employment numbers.

BGI Sale Would Provide Big Boost To BlackRock, BNY Mellon

As negotiations continue on the sale of Barclays Global Investors, the two most widely discussed potential bidders—BlackRock Inc. and the Bank of New York Mellon—stand to gain a large immediate boost in assets if either one wins.

This Bloomberg News analysis pinpoints just how big each would become in terms of assets and the potential impact on the exchange-traded funds marketplace.

You can read the story here.

Arnott Article On Bonds Stirring Debate

In today's Wall Street Journal, John Spence explores the debate stirred by Rob Arnott in his recent Journal of Indexes story about the long-term benefits of bonds as opposed to stocks.

The story, which originally appeared at MarketWatch.com, talks to others who take the opposing side.

If you're a subscriber to the WSJ, that story can be found here. If you're not, a free version at MarketWatch is here.

Taiwan To Get Shanghai Listing?

Also in the WSJ, this short piece from last week notes the possible impending listing of Taiwan in mainland China.

It's something that has been rumored for awhile, but the WSJ found a Chinese official who was willing to talk about it on the record during a recent conference.

You can read the story here.

* Today's WSJ reports a number of insurers have received approval for up to $22 billion in TARP funds. The companies include: Hartford Financial Services (NYSE:HIG), Prudential Financial (NYSE:PRU), Lincoln National (NYSE:LNC), Allstate (NYSE:ALL), Ameriprise Financial (NYSE:AMP) and Principal Financial Group (NYSE:PFG)

* Barclays (NYSE:BCS) is reportedly in talks to sell its Global Investors division, with BlackRock (NYSE:BLK) and Bank of New York Mellon (NYSE:BK) named as possible suitors

* Abercrombie and Fitch (NYSE:ANF) reported a first quarter loss of 31 cents per share, which missed Street estimates by 17 cents, as revenues declined 23.5% year-over-year to $612 million

• Allegheny Energy Inc (AYE)
• AnnTaylor Stores Corp (ANN)
• Arbor Realty Trust Inc (ABR)
• Bank of New York Mellon Corp (BK)
• Boise Inc (BZ)
• Build-A-Bear Workshop Inc (BBW)
• C&D Technologies Inc (CHP)
• Callaway Golf Co (ELY)
• Celgene Corp (CELG)
• China Sunergy Co Ltd (CSUN)
• Cutera Inc (CUTR)
• Cynosure Inc (CYNO)
• Dayton Superior Corp (DSUPQ)
• Domtar Corp (UFS)
• Doral Financial Corp (DRL)
• Eastern Insurance Holdings Inc (EIHI)
• Embraer - Empr Bras Aeronautica (ERJ)
• Employers Holdings Inc (EIG)
• EMS Technologies Inc (ELMG)
• Eni SpA (E)
• FalconStor Software Inc (FALC)
• FARO Technologies Inc (FARO)
• FBL Financial Group (FFG)
• First M & F Corp (FMFC)
• Gevity HR Inc (GVHR)
• Harbin Electric Inc (HRBN)
• Hartford Financial Services (HIG)
• InterOil Corp (IOC)
• Kelly Services Inc (KELYA)
• Legacy Bancorp Inc (LEGC)
• LSI Industries Inc (LYTS)
• The Macerich Co (MAC)
• Markel Corp (MKL)
• Marsh & McLennan Companies Inc (MMC)
• MDU Resources Group Inc (MDU)
• Media General Inc (MEG)
• Nara Bancorp Inc (NARA)
• Norfolk Southern Corp (NSC)
• Old Dominion Freight Line (ODFL)
• Open Text Corp (OTEX)
• Park Electrochemical Corp (PKE)
• Parkway Properties Inc (PKY)
• Penford Corp (PENX)
• Regal-Beloit Corp (RBC)
• Regency Centers Corp (REG)
• Republic Airways Holdings Inc (RJET)
• RRI Energy Inc (RRI)
• Signature Bank (SBNY)
• Solarfun Power Holdings Co Ltd (SOLF)
• Tennessee Commerce Bancorp Inc (TNCC)
• Timberland Bancorp Inc (TSBK)
• Washington Trust Bancorp (WASH)
• The Washington Post Co (WPO)
• Zygo Corp (ZIGO)

• Arena Resources Inc (ARD)
• Bank of New York Mellon Corp (BK)
• W R Berkley Corp (WRB)
• Bristow Group Inc (BRS)
• Callwave Inc (CALL)
• Capital Trust Inc (CT)
• Carlisle Companies Inc (CSL)
• Carrizo Oil & Gas Inc (CRZO)
• Center Financial Corp (CLFC)
• Century Casinos Inc (CNTY)
• Cheniere Energy Inc (LNG)
• Churchill Downs Inc (CHDN)
• CNinsure Inc (CISG)
• Commercial Vehicle Group Inc (CVGI)
• Community Bancorp (CBON)
• CRM Holdings Ltd (CRMH)
• CryptoLogic Ltd (CRYP)
• Cutera Inc (CUTR)
• Cypress Bioscience Inc (CYPB)
• Dynamic Materials Corp (BOOM)
• El Paso Electric Co (EE)
• EnPro Industries Inc (NPO)
• Enterprise Financial Services Corp (EFSC)
• FalconStor Software Inc (FALC)
• FARO Technologies Inc (FARO)
• First M & F Corp (FMFC)
• First Security Group Inc (FSGI)
• Flamel Technologies SA (FLML)
• Flanders Corp (FLDR)
• Flushing Financial Corp (FFIC)
• Franklin Electric Co (FELE)
• Gol Linhas Aereas Inteligentes SA (GOL)
• HSBC Holdings Plc (HBC)
• Huntsman Corp (HUN)
• InterOil Corp (IOC)
• Investment Technology Group (ITG)
• INX Inc (INXI)
• LoJack Corp (LOJN)
• McGrath RentCorp (MGRC)
• Media General Inc (MEG)
• Mercer International Inc (MERC)
• MetroCorp Bancshares Inc (MCBI)
• Nordic American Tanker Shipping Ltd (NAT)
• Olympic Steel Inc (ZEUS)
• Otter Tail Corp (OTTR)
• Paragon Shipping Inc (PRGN)
• Perini Corp (PCR)
• Princeton Review Inc (REVU)
• Prospect Capital Corp (PSEC)
• Quest Capital Corp (QCC)
• Sasol Ltd (SSL)
• Signature Bank (SBNY)
• Standard Microsystems Corp (SMSC)
• Superior Energy Services Inc (SPN)
• TAL International Group Inc (TAL)
• Telecomunicacoes de Sao Paulo SA (TSP)
• Textron Inc (TXT)
• Timberland Bancorp Inc (TSBK)
• Unica Corp (UNCA)
• United America Indemnity Ltd (INDM)
• Votorantim Celulose e Papel SA (VCP)
• Western Refining Inc (WNR)
• WSP Holdings Ltd (WH)
• Xyratex Ltd (XRTX)

Financials were the leading gainers yesterday, with a 3.6% advance, ahead of today's release of methodologies employed in the stress tests given to 19 US banks, intended to indicate the banks' abilities to survive more adverse economic conditions. The consensus belief is that most banks will fare relatively well, passing the tests, but the nervousness is intact until the results are declared on May 4. Credit card firms saw a jump in their stocks yesterday after President Obama's meeting with senior executives of Bank of America (NYSE:BAC), JP Morgan Chase (NYSE:JPM), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), US Bancorp (NYSE:USB), Visa (NYSE:V), MasterCard (NYSE:MA), Capital One Financial (NYSE:COF), American Express (NYSE:AXP), Discover Financial Services (NYSE:DFS) and several other firms. Obama's conciliatory tone soothed nerves, sending shares of Wells Fargo (NYSE:WFC) up 10.5%, Capital One (NYSE:COF) up 17.7%, and American Express (NYSE:AXP) up 7.9%. Today's docket will witness applicants for five positions as managers for raising funds in the governments' program to create a market for banks' illiquid, mortgage-backed assets clogging balance sheets. Candidates include Blackrock (NYSE:BLK), Pimco, and Bank of New York Mellon (NYSE:BK).

Economic posts yesterday failed to give any indication of a budding recovery, as US labor and housing posts continued to disappoint. Initial jobless claims rose 27,000 to 640,000, inline with analyst expectations. Continuing claims advanced to a record 6.137 million. On the housing front, existing home sales revealed a surprisingly large 3% drop in March to an annual rate of 4.57 million.

Today's key items of interest include March durable goods orders, expected to reverse February's 5.1% rise with a decline of 1.5%. Excluding autos, orders are expected to have dropped 1.3%, reversing the prior month's 3.9% jump. New home sales for March are expected to hold steady at 337,000. Disappointment outweighs chances of a pleasant surprise, following last week's Census Bureau report that new-home construction fell 9% in March from the prior month's pace. Also meeting are leaders of G7, with Treasury Secretary Geithner slated to speak after the meeting at 4:30 PM ET.

On the corporate front, Microsoft's (NASDAQ:MSFT) headline results indicated a 30% decline, on "a broad-based slowdown across virtually all product lines and geographies" according to the firm's CFO, who also expects the recovery to be slow and gradual. However, Microsoft shares rose in after-market trading as results ex-items matched estimates and release of its Windows 7 operating system appears on track.  Bellwether UPS (NYSE:UPS) warned of a challenging second quarter, although hopeful the economy would bottom later this year. Steelmaker Nucor (NYSE:NUE) rued a virtually nonexistent demand for steel.

State Street Corp. (STT) shares lost half their value on Tuesday after the world's largest institutional money manager reported a 71% drop in quarterly income. The company is suffering from unrealized bond losses and said it had already reviewed the possibility of raising capital.

In its fourth quarter, the parent of State Street Global Advisors' net income fell to $65 million, or 15 cents a share, from $223 million, or 57 cents, a year ago, as the volatile stock and bond markets eroded the value of customer assets. State Street also booked a $450 million charge for supporting some high-value funds. Excluding items, quarterly income was $1.18 per share, down from $1.38, last year.

Unrealized investment portfolio and commercial paper losses nearly doubled to $10 billion in the quarter. The company also pared down its financial guidance to forecast flat results for the current year. State Street booked a profit of $5.21 per share in fiscal 2008. Revenue is also expected to remain unchanged, falling short of the company's target of a 8% to 12% growth. Chief Executive Ron Logue said unrealized losses will continue to be a concern.

While State Street has largely remained immune to the credit crisis, speculation that it might soon need to raise capital to write off huge unrealized portfolio losses weighed on rival custodian company stocks as well. Bank of New York Mellon Corp. (BK) lost nearly 25% at noon to trade at $17.38, Legg Mason Inc. (LM) fell nearly 13% to $18.39 on the New York Stock Exchange.

The only question was how quickly the money would hit the streets, and Jing Ulrich, J.P. Morgan Chase, said that, “With a healthy fiscal surplus and low government debt, China appears to have considerable resources to ramp up its fiscal spending in a short period of time.”

Weekend news of the Chinese package had lifted equity markets around…

After trading in more than 100 exchange-traded commodity funds tied to American International Group was halted last month on the London Stock Exchange, a new agreement was announced on Tuesday.

London-based ETF Securities, which issued the ETCs, said that AIG had agreed to post some $1.5 billion in collateral to cover contracts. ETF Securities has about $6.5 billion in ETC assets, according to published reports.

ETF Securities told Reuters that about 20% of those ETC assets were held in funds that were backed by matching contracts guaranteed by AIG.

In September, the U.S. government had to step in with an $85 billion bailout package to rescue the once-mighty insurance conglomerate.

"Going forward, the collateral will be valued each business day by BNY Mellon utilizing generally recognized pricing information vendors, subject to an agreed dispute mechanism, and AIG-FP is required to transfer additional collateral if the value of the collateral in the account falls below the value of all commodity securities in issue," ETF Securities added.

It also stressed that AIG has continued to honor all of its obligations with regard to commodity securities, "including processing all creations and redemptions in the usual manner and paying all redemptions due on time."

In addition, ETF Securities said that the Bank of New York Mellon would serve as collateral manager for the deal. It will hold collateral paid by AIG in a separate account over which a unit of ETF Securities "may take control by delivering to BNY a notice of exclusive control," said the company in a statement.

ETF Securities will host a conference call on Monday at 9 a.m. in London to discuss details of the collateralization of its ETCs.

The S&P 500 is set to add another exchange to its blue chip index. After the close of trading on Tuesday, the Nasdaq OMX Group Inc. will replace department store chain Dillard's Inc., which has occupied the blue chip benchmark's last spot.

The shift follows the addition of Comstock Resources Inc., an oil and natural gas producer, to the S&P MidCap 400 index. It replaced Entercom Communications Corp., a radio broadcaster that was listed as the benchmark's 400^th largest company based on market-cap size when the move was made last week.

Also, the S&P SmallCap 600 index has made two changes within the past week. One of those involved replacing wireless tech provider EMS Technologies with Radio One Inc.  At the same time, Integral Systems Inc. was added and Fleetwood Enterprises, which makes recreational vehicles, fell out of the benchmark.

This has been a relatively active few months for the S&P 500. Since June alone, some 23 companies have been deleted, starting with the now defunct Bear Stearns on June 2. Most have been financials hit hard by the global credit crisis, including Lehman Brothers (deleted on Sept. 16) and Washington Mutual on Sept. 29.

Among recent additions is Invesco, the parent of exchange-traded funds giant PowerShares. Another player in the ETF marketplace, Bank of New York Mellon, joined the S&P 500 in May.

The addition of the Nasdaq is the first new exchange in the index since the Chicago Mercantile Exchange became part of the S&P 600 last August. Other exchanges in the S&P 500 are the NYSE and the Intercontinental Exchange. 

The Nasdaq certainly has been on an aggressive expansion path, particularly in ETFs. In the wake of the merger by what has been the industry's largest exchange, the American Stock Exchange, with the New York Stock Exchange, the Nasdaq has had a flurry of new offerings with its own ETF platform.

The Nasdaq has also been remaking itself from a domestic stock-focused exchange into a global provider. According to the company, its net revenues have shot up more than 200% in the past three years. Since going public three years ago, the Nasdaq's market cap has soared from around $700 million to top $6 billion.

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The lowered estimate still represents a 1.2% increase in S&P 500 dividend payments from the $27.73 posted in 2007,and translates into a $244.7 billion aggregate payment for the S&P 500 companies for 2008.

"The 1.2% expected increase in S&P 500 dividend payments for 2008 will be the lowest growth rate since 2001 when payments were down 3.3%," said Howard Silverblatt, S&P's senior index analyst, in a statement.

"The growth ratef or dividends was negatively impacted by financials. Year-to-date, there have been 35 dividend cuts by financial issues with an aggregate decrease of $31 billion compared to just 12 cuts over the past five years reducing dividends by $3.1 billion."

The S&P 500 is set to add another exchange to its blue chip index. After the close of trading on Tuesday, the NASDAQ OMX Group Inc. will replace department store chain Dillard's Inc., which has occupied the blue chip benchmark's last spot.

The shift follows the addition of Comstock Resources Inc., an oil and natural gas producer, to the S&P MidCap 400 index. It replaced Entercom Communications Corp., a radio broadcaster that was listed as the benchmark's 400^th largest company based on market-cap size when the move was made last week.

Also, the S&P SmallCap 600 index has made two changes within the past week. One of those involved replacing wireless tech provider EMS Technologies with Radio One Inc.  At the same time, Integral Systems Inc. was added and Fleetwood Enterprises, which makes recreational vehicles, fell out of the benchmark.

This has been a relatively active few months for the S&P 500. Since June alone, some 23 companies have been deleted, starting with the now defunct Bear Stearns on June 2. Most have been financials hit hard by the global credit crisis, including Lehman Brothers (deleted on Sept. 16) and Washington Mutual on Sept. 29.

Among recent additions is Invesco, the parent of exchange-traded funds giant PowerShares. Another player in the ETF marketplace, Bank of New York Mellon, joined the S&P 500 in May.

The addition of the NASDAQ is the first new exchange in the index since the Chicago Mercantile Exchange became part of the S&P 600 last August. Other exchanges in the S&P 500 are the NYSE and the Intercontinental Exchange. 

The NASDAQ certainly has been on an aggressive expansion path, particularly in ETFs. In the wake of the merger by what has been the industry's largest exchange, the American Stock Exchange, with the New York Stock Exchange, the NASDAQ has had a flurry of new offerings with its own ETF platform.

The NASDAQ has also been remaking itself from a domestic stock-focused exchange into a global provider. According to the company, its net revenues have shot up more than 200% in the past three years. Since going public three years ago, the NASDAQ's market cap has soared from around $700 million to top $6 billion.

Separately on Tuesday, Standard & Poor's lowered its expectations for 2008 dividend payment levels for the S&P 500 from $28.85 to $28.05.

The lowered estimate still represents a 1.2% increase in S&P 500 dividend payments from the $27.73 posted in 2007, and translates into a $244.7 billion aggregate payment for the S&P 500 companies for 2008.

"The 1.2% expected increase in S&P 500 dividend payments for 2008 will be the lowest growth rate since 2001 when payments were down 3.3%," said Howard Silverblatt, S&P's senior index analyst, in a statement.

"The growth rate or dividends was negatively impacted by financials. Year-to-date, there have been 35 dividend cuts by financial issues with an aggregate decrease of $31 billion compared to just 12 cuts over the past five years reducing dividends by $3.1 billion."

2008 Top Alternative Investment Managers

1. Goldman Sachs
2. Bank of New York Mellon Corp
3. JP Morgan Asset Management
4. Credit Suisse Asset Management
5. State Street Global Advisors
6. BlackRock
7. Legg Mason
8. Farallon Capital Management
9. Bridgewater Associates
10. Lehman Brothers Holdings
11. Evergreen Investments
12. Renaissance Technologies Corporation
13. Och-Ziff Capital Management Group
14. D.E. Shaw Group
15. MassMutual Financial Group
16. Pualson & Co.
17. Barclasys Global Investors
18. MFC Global Investment Management
19. Oaktree Capital Management
20. Affiliated Managers Group
21. GSC Group
22. US Bancorp
23. Morgan Stanley Investment Management
24. Atticus Capital
25. Citadel Investment Group

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The rally was sparked by commitments from the major financial nations to cooperate in getting the credit markets functioning again, and by news that U.S. officials were putting the finishing touches on Washington’s version of a rescue plan under which the U.S. Treasury Department will invest an estimated $125 billion in nine major U.S. banks, and another $125 billion in smaller financial institutions, Bloomberg News reported early this morning (Tuesday).

The White House announced that U.S. President George W. Bush would meet at 7:30 a.m. EDT today with members of his financial markets working group. He’ll make a statement about the plan at 8:05 a.m. U.S. Treasury Secretary Henry M. “Hank” Paulson Jr., U.S. Federal Reserve Chief Ben S. Bernanke and Federal Deposit Insurance Corp. Chair Sheila C. Bair will discuss the plan during an 8:30 a.m. news conference, MarketWatch.com and Bloomberg both reported.

“These are tough times for our economies, yet we can be confident that we can work our way through these challenges and America will continue to work closely with the other nations to coordinate our response to this global financial crisis,” President Bush told reporters yesterday following a meeting with Italy Prime Minister Silvio Berlusconi at the White House.

After an eight-day losing streak – the worst for the Standard & Poor’s 500 Index since 1996 – those dramatic worldwide developments were enough to spawn a rally of historic proportions in U.S. shares. The S&P 500 rebounded from its worst week in 75 years with an 11.6% advance, jumping 104.13 points to close at 1,003.35. The Dow zoomed 936.42 points, or 11%, to close at 9,387.61 – eviscerating the previous record of 499 points, set in March 2000, and posting its best percentage gain since 1933.

The Nasdaq Composite Index climbed 194.74, or 12%, to 1,844.25. Sixteen stocks gained for each that fell on the New York Stock Exchange.

Last week’s 18% declines pushed both the S&P 500 and Dow down more than 40% from their peaks last October.

The S&P 500 ended the trading day Friday at 17 times reported earnings of its companies, the cheapest valuation in more than a year. Yesterday’s really boosted the Price/Earnings ratio to 19.2. The S&P 500 is still down 32% this year, positioning it for its worst yearly loss since 1937.

“The worst of the immediate danger is past,” Bruce McCain, chief investment strategist at Key Private Bank (KEY) in Cleveland, which manages $30 billion, told Bloomberg, the well-known financial news service.“It’s always easier when you’ve got markets going up and you’re not having to talk clients back in off the ledge.”

Kevin Divney, chief investment officer at Putnam Investments in Boston, told Bloomberg Television that “the real catalyst is the levels of valuation.”

But not everyone was quite so sanguine. Money Morning Investment Director Keith Fitz-Gerald cautioned that one strong day in the markets – even a record one – doesn’t necessarily mean there’s a full-fledged rebound in store.

“The real economic growth rates in the financial sector are unclear,” Fitz-Gerald said in an interview. “To say that it’s an accounting nightmare is an insult to the Hollywood honchos who actually make their living transforming nightmares into movies. Fiction writers could not concocted a better horror story than the one that’s rocked world financial markets since last November. Despite all the mergers and acquisitions, and the emergency bailouts, that we’ve seen to date, Wall Street hasn’t even begun to address the underlying business prospects – on anything more than a superficial level – of the lion’s share of the companies that are being bailed out.” [For Fitz-Gerald’s full take on yesterday’s market action – including some insights on how he believes investors should navigate the uncertainty – check out his special market commentary that appears elsewhere in today’s issue.]

All 10 industries in the S&P 500 added more than 7%. Monday’s worldwide rally – which ranged from Tokyo to New York – sent the MSCI World Index up 9.5 %, the biggest gain since the gauge was created in 1970, MarketWatch reported.

The bond market was closed for the Columbus Day holiday. The dollar fell the most in three weeks against the euro.

Details of a Bailout/“Rescue” Plan

On Sunday, the major European Union nations committed more than $2.3 trillion to safeguard their banks and financial system, according to The Associated Press.  Global efforts to rescue the international banking system gathered force yesterday, with Europe leading the way to provide money to shore up its financial sector and calm traders, and the U.S. hinting it’s on board with its own rescue plan, MarketWatch reported. [For details of the sweeping European rescue plan, check out this related report elsewhere in today’s issue of Money Morning.]

U.S. bankers were summoned to the Treasury Department yesterday, as the U.S. government prepared additional measures to stabilize markets, reported the U.S. shortwave broadcasting service, The Voice of America.

Over the weekend, Treasury Secretary Paulson had called the heads of the five biggest U.S. banks to come to Washington for face-to-face talks about the rescue plan, according to people briefed on the matter. Goldman Sachs Group Inc. (GS) Chief Executive Officer Lloyd C. Blankfein, Morgan Stanley (MS) CEO John J. Mack, Citigroup Inc. (C) CEO Vikram Pandit, JPMorgan Chase & Co. (JPM) CEO Jamie Dimon and Bank of America Corp. (BAC) CEO Kenneth D. Lewis were all asked to attend, according to The AP.

The CEOs had been in Washington this past weekend to meet with international finance officials at the annual meetings of the International Monetary Fund (IMF) and World Bank. This group of U.S. banking sector leaders met with Paulson and Fed Chairman Bernanke for about three hours yesterday, several news sources have said.

When asked for precise details about the plan that’s to be unveiled early today, U.S. Treasury officials remained mum. Indeed, sources would only say that it would include a “series of comprehensive actions to strengthen public confidence in our financial institutions and restore functioning of our credit markets.”

However, after the CEO meetings, some details began to leak out. Industry insiders speculated late yesterday that the Federal Reserve and Treasury Department had outlined a plan to inject as much as $250 billion of the $700 billion rescue plan into top U.S. banks.

In addition, to jumpstart “Interbank” lending, the FDIC would actually insure new senior preferred debt for three years.

The Treasury Department would take the equity stakes in banks using authority it was granted under the $700 billion bank rescue plan enacted two weeks ago.

“We’re talking about making investments in these banks in a way that doesn’t necessarily punish existing shareholders,” Charles Bobrinskoy, vice chairman of Ariel Investments LLC, which manages $13 billion, said on Bloomberg TV. “Most of the bank actions to date in the U.S. have been good for bondholders but terrible for common stockholders.”

Government actions this year to prevent bankruptcies at investment bank Bear Stearns Cos., mortgage lenders Fannie Mae (FNM) and Freddie Mac (FRE) and insurer American International Group Inc. (AIG) resulted in near-total losses for the firms’ shareholders.

The collapse of New York-based Lehman Brothers Holdings Inc. (LEHMQ) on Sept. 15 precipitated the latest chapter of the 14-month-old credit crisis, causing banks to stop lending to each other out of concern they may not get their money back.

Direct investments of this magnitude represent a new approach for Treasury Secretary Paulson, who initially advocated a bailout targeted at illiquid mortgage-related assets. When the markets didn’t respond positively to earlier plans, the Treasury Department shifted gears – in a big way.

“They’ve decided they need to do something drastic and this is drastic,” Gerard S. Cassidy, a bank analyst at RBC Capital Markets (RY) in Portland, Maine, told Bloomberg.

The proposed cash injections in exchange for preferred shares are said to be destined for Citigroup, Goldman Sachs, Wells Fargo & Co. (WFC), JP Morgan Chase & Co., Bank of America Corp., Merrill Lynch & Co. Inc. (MER), Morgan Stanley, State Street Corp. (STT), and Bank of New York Mellon Corp. (BK).

“The government has gone to ‘Plan B’ and it packs a big wallop,” Frederic Dickson who helps oversee $25 billion as chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon, told the financial news service.

The Treasury plans to spend $25 billion each for stakes in Citigroup and JPMorgan, people said. Another $25 billion will be divided between Bank of America and Merrill, which agreed last month to be acquired by Bank of America. Wells Fargo is to get at least $20 billion, Goldman and Morgan Stanley will each get $10 billion, and State Street and Bank of New York will get about $3 billion each, people said.

The government will obtain its stakes with a type of security designed not to dilute the value of common shares.

None of the nine banks getting government money was given a choice about it, said people familiar with the plans. All of the banks involved will have to submit to compensation restrictions as mandated by Congress, people said.

The remaining $125 billion will be used to recapitalize other financial institutions around the country, the people said. Neel Kashkari, the U.S. Treasury official overseeing the rescue of the financial system, yesterday said the equity purchases would be aimed at “healthy” firms.

Source: Dow Zooms to Record Gain Yesterday on Reports The Government Will Reveal Banking Bailout Plan Details Early Today

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