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Stocks surge on Treasury chief talk
Wall Streeters hail reports that Obama has chosen New York Fed president Geithner for key economic job.
NEW YORK (CNNMoney.com) -- Stocks rallied Friday, with the Dow industrials bouncing as much as 550 points, after reports surfaced that President-elect Barack Obama will nominate New York Federal Bank president Timothy Geithner as his new Treasury Secretary.
The Dow Jones industrial average (INDU) rose 494 points, or 6.6%, according to early tallies. It was the fifth-biggest single-session point gain ever, according to Dow Jones.
The Standard & Poor's 500 (SPX) index gained 6.3% and the Nasdaq composite (COMP) added 5.2%.
Stocks rallied in the morning on reports that troubled Citigroup (C, Fortune 500) might put itself up for sale. But the company's CEO shot down the rumors in a call with senior managers, sending Citi's shares and the broader market lower.
But the market managed to snap back in the last two hours of trading as reports about the president-elect's cabinet appointment circulated. Stocks had also been primed for a snap-back rally anyway, after the S&P 500 ended the previous session at an 11-1/2 year low.
In particular, Wall Street seemed to welcome Obama's reported pick of Geithner, the vice chairman of the Federal Reserve's policy-setting committee. Geithner was the Fed's point person on the rescue of Bear Stearns and AIG.
Additionally, New Mexico Gov. Bill Richardson is reportedly being considered for Commerce Secretary.
http://money.cnn.com/2008/11/21/markets/markets_newyork/?postversion=2008112115