An Explanation for the Late Day Rally

From CBS Marketwatch

Financials bounced back led by a nearly 13% in shares of Bear Stearns. The company, which heralded the recent credit market crisis when two of its hedge funds ran into trouble, has been talking with potential investors, including Chinese banks about new funding, said Richard Bove, analyst at Punk Ziegel & Co.

The firm is talking about selling as much as a 20% stake in the company, Bove said

Also helping financials, a report by rating-agency Fitch said that U.S. brokerage firms are well funded and have sufficient capacity to absorb losses from marking their assets to market.