U.S. stocks may continue their record rally from Monday as investors' confidence was buoyed by Treasury Secretary Henry Paulson's plan to invest $125 billion in the nine largest financial institutions. Japan Nikkei 225 Index had its biggest jump in its 59-year history. Benchmarks in 16 out of 17 Western European countries also advanced, according to Bloomberg News.``The market is saluting the bailout plan,'' said Chicuong Dang, an analyst at KBL Richelieu Gestion in Paris, in an interview with Bloomberg.
Under the Bush Administration's plan, the government will buy preferred shares in nine of the largest financial firms including Goldman Sachs Group Inc. (NYSE: GS), Morgan Stanley (NYSE: MS) and Bank of America Corp. (NYSE: BAC). The money is coming from the recently enacted $700 billion rescue of Wall Street.
Here is a look at other news that may move markets:
- Big-shot hedge fund managers Paul Tudor Jones and Stephen A. Cohen have been forced to sell assets amid tightening credit markets and falling stock prices, according to Bloomberg.
- Morgan Stanley is "in a much stronger position" because of the $9 billion investment its received from Japan's Mitsubishi UFJ Financial Group Inc., Chief Executive John Mack told The Wall Street Journal.
- Google Inc. (NASDAQ: GOOG) and Yahoo Inc. (NASDAQ: YHOO) are in talks with the Justice Department to avoid an antitrust lawsuit on their advertising deal, the Journal said
- Media mogul Sumner Redstone has been forced to sell off large chunks of his holdings in CBS Corp (NYSE: CBS) and Viacom Inc. (NYSE: VIA). the Journal said.
- Commodity prices are falling, putting money into the pockets of consumers when they need it most, the New York Times reported.
- The General Motors Corp. (NYSE: GM) -- Chrysler LLC buyout talks are at a critical juncture. The company and Chrysler's owner Cerberus Capital Management are discussing how much cash the buyout firm will contribut to the joint venture and how much stock it will get in return, the Tiimes said.
Why do we have a weak dollar?
Holiday hiring slow for retailers
Closing Bell: What sell-off? (AIG, ABK, EPR, MBI, JAVA, ORCL, ERTS)
