On a no news kind of day, stocks drifted remaining down 100 until the last ½ hour. Then a rumor popped about a bailout plan for troubled Ambac (ABK), such a plan could be announced in the next couple of business days. ABK provides insurance for many bonds, a loss of AAA rating would be devastating to those bonds (and others). Ambac's continued strong financial health is extremely important to many companies with debt, not to mention banks, etc. holding a lot of bonds. After the late day rally, Dow ended up 98 (200 point rally), advancers over decliners almost 3-2 & NAZ eaked out a 3 point advance. The latter is less dependant on the news showing the sluggish economy continues to weigh heavily on the markets. The VIX (volatility index) declined 1 today, but at 24 it remains in high territory. The sharp rally at day's end demonstrates what can happen when the index is this high.
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