U.S. stocks rally to close higher on hopes for AIG rescue

Date: Tue, 16 Sep 2008 17:04:21 -0400
U.S. stocks rally to close higher on hopes for AIG rescue

U.S. stocks head into the last hour of trading in dramatic fashion,
plunging after the Federal Reserve refused to cut interest rates, then
leaping back on reports the government might extend a loan to embattled
insurer American International Group Inc.

Senate banking chief wants more housing aid, eyes stimulus

Sen. Dodd calls for more aid to homeowners and possibly an additional
economic stimulus package, saying the U.S. faces a deepening economic
crisis.

The Fed: Fed leaves rates at 2%, projecting calm during storm

Trying to project an appearance of calm and stability amid the turmoil
of financial markets, the Federal Reserve holds its benchmark Fed funds
rate at 2.0%.

Economic Report: Consumer prices fall 0.1% on weaker energy prices

With energy prices falling sharply, U.S. consumer prices declined 0.1%
in August, the first decrease in nearly two years, the Labor Department
reported Tuesday.

Goldman profit falls 70%, CFO rules out bank deal

Goldman Sachs adds to the mounting sense of gloom on Wall Street Tuesday
when it reports that third-quarter profit plunged 70% from a year ago as
business slowed across the board and the firm posts more than $800
million in losses from sour residential and commercial real estate
assets.