Stocks Rally on GDP Revision

MBIA's jump leads insurers higher, and lower energy prices power big gains
By Nick McMaster,  Newser Staff
Posted Aug 28, 2008 3:15 PM CDT
Stocks Rally on GDP Revision
Traders gather at a post on the floor of the New York Stock Exchange.   (AP Photo)

Stocks rallied today as MBIA led gains for bond insurers and the news of an upward revision to the second-quarter US gross domestic product brightened investor sentiment, MarketWatch reports. The Dow rose 212.67 to close at 11,715.18. The Nasdaq gained 29.18, closing at 2,411.64, and the S&P 500 climbed 19.01 to settle at 1,300.67.

Crude oil reversed three days of gains and ended down $2.56 as it remained uncertain whether Tropical Storm Gustav would hit oil production in the Gulf of Mexico. MBIA rallied 34.7% after showing its health by striking a deal to reinsure billions in bonds by Financial Guaranty Insurance. MBIA rivals Ambac Financial and MGIC Investment also rose on the news. (More Dow Jones stories.)

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