Wall Street Rallies on Oil Prices, Financial Stocks Stumble

Wall Street's volatile session ended with a sigh of relief as investors rallied on the strength of rising oil prices, despite concerns over the banking sector and its worsening recession. The Dow Jones Industrial Average surged 68.73 to 8,281.22, while the Nasdaq and S&P 500 also posted gains. However, financial stocks took a hit, with Citigroup and Bank of America shares plummeting amid fears of further government intervention.

Key Takeaways:

• The Dow Jones Industrial Average rose 68.73 points, or 0.84 percent, to 8,281.22, with ExxonMobil and Chevron shares leading the charge.
• The Nasdaq climbed 17.49 points, or 1.16 percent, to 1,529.33, driven by gains in energy stocks.
• Financial stocks suffered, with Citigroup shares down 48 percent and Bank of America shares down 45 percent for the week.
• The Labor Department reported a 0.7 percent drop in consumer prices in December, the third consecutive monthly decline.
• The Consumer Price Index rose 0.1 percent for 2008, the smallest annual increase since 1954.
• President Dwight D. Eisenhower's first term in office saw a similar decline in the CPI.
• The banking sector remains a concern, with Bank of America posting a $2.39 billion loss in the fourth quarter, its first quarterly decline in 17 years.
• The bank's total government aid now stands at $45 billion, with a potential guarantee for up to $118 billion in losses on commercial and residential real estate-backed loans.
• Citigroup will split its traditional banking business from its riskier holdings, while Chrysler Financial received a $1.5 billion loan from federal bailout money.

Statistics:

• 68.73: The Dow Jones Industrial Average's point gain on the day
• 8,281.22: The Dow Jones Industrial Average's closing price
• 0.84 percent: The Dow Jones Industrial Average's percentage gain
• 17.49: The Nasdaq's point gain on the day
• 1.16 percent: The Nasdaq's percentage gain
• 0.7 percent: The decline in consumer prices in December
• 0.1 percent: The increase in the Consumer Price Index for 2008
• 1954: The year marking the last time the Consumer Price Index had a smaller annual increase
• 2.39 billion: Bank of America's quarterly loss
• 45 billion: Bank of America's total government aid
• 118 billion: The potential guarantee for losses on commercial and residential real estate-backed loans
• 6.8 billion: The number of shares traded on the New York Stock Exchange

Sources:

• The Washington Times
• Reuters news agency
• Labor Department report
• Bank of America earnings report
• Citigroup earnings report