Stocks up, Bank of America to buy Countrywide

There were a bunch of big stories. Stocks rallied sharply late in the day on news that Bank of America (BAC) was in advance talks (whatever that means) to buy Countrywide (CFC), the troubled mortgage lender. BAC was up 56¢ & CFC rallied to $7.97 (although down $1 from it's high). The Dow rose, but gains were reduced to 117 by the close. Advancers beat decliners 2-1, not that good all considered. Airlines were up very big on stories about possible mergers. However, after the close, American Express (AXP), a Dow stock, warned about lower profits in Q4 & gave a cautious outlook for 2008. The stock fell $3. Gold rose to 890, another record and the VIX (volatility index) is over 23 (above 20 indicates high volatility). I think AXP's negative announcement this afternoon will weigh on the markets tomorrow.