U.S. stock market recovers on Reuters Summit story
11.11.2008
U.S. stocks rose 150 pts in afternoon trading on Tuesday, Nov 11 after BlackRock President Robert Kapito told the Reuters Global Financial Summit that a $30 billion Bear Stearns mortgage portfolio could end up being worth more than its market value implies. The S&P financial index slashed losses to be little changed after his comments. “All those financials have toxic assets marked at fairly draconian prices and if cash flows were better from the Bear portfolio, that is a positive for the market,” said Bobby Harrington, head of block trading at UBS in Stamford, Connecticut. “It implies that maybe things are not as bad as the market is telling us.” Shortly after the headlines hit the Reuters wire, CNBC credited the news on its “Power Lunch” program as the reason for the market rebound.
