dow closes 302 pts up or 2.52, page-3

maybe this?

U.S. Stocks Rise, Erasing Decline, as Financial Companies Gain

By Elizabeth Stanton

Jan. 23 (Bloomberg) -- U.S. stocks rallied for the first time in a week on speculation lower borrowing costs and a plan to bail out bond insurers will restore confidence in the financial system.

Citigroup Inc., JPMorgan Chase & Co. and Bank of America Corp., the biggest U.S. banks, helped the Dow Jones Industrial Average erase a 326-point loss and sparked the biggest advance in financial shares in five years. Centex Corp. and D.R. Horton Inc. led a gauge of homebuilders to its steepest gain since 2002 on expectations the Federal Reserve's surprise 0.75 percentage point rate cut yesterday will spur construction.

The Standard & Poor's 500 Index, which is off to its worst- ever start to a year, added 20.32, or 1.6 percent, to 1,330.82 at 3:45 p.m. in New York, its first advance in six days. The Dow average rose 222.98, or 1.9 percent, to 12,194.17. The Nasdaq Composite Index increased 18.92, or 0.8 percent, to 2,311.19.

Ambac Financial Group Inc. and MBIA Inc., the two biggest U.S. bond insurers, advanced after New York State regulators met with banks to discuss raising new capital.

JPMorgan increased $5.09 to $45.95. Bank of America added $3.40 to $40.79. Citigroup gained $2.27 to $26.67. Bear Stearns Cos. recommended investors buy shares of large banks, which historically have outperformed during periods of aggressive Fed rate cuts.

New capital may help preserve the top credit ratings for the bond guarantors such as MBIA, the industry's largest, and boost investor confidence in the $2 trillion of assets they guarantee.

Ambac Financial, MBIA's biggest rival, lost its AAA grade from Fitch Ratings this month on concern about rising defaults tied to subprime mortgages.

Ambac rallied $5.02, or 63 percent, to $12.99. MBIA increased $3.32, or 27 percent, to $15.85.

To contact the reporter on this story: Elizabeth Stanton in New York at [email protected]