The first day of the new quarter, there are a lot of money being put to work- mutual funds and pension funds are probably buying some equity to re-balance the equity portion of their portfolios. - since equity prices have been on the decline, that portion of the portfolio is actually less than their actual allocation- so they need to buy equity to readjust.
Lehman's ability to raise money debunked many rumors and myths about the bank inability to get access to liquidity- although it is bad for the bank's existing shareholders- their shares are now more diluted.
ISM number also came out better than expected- with no bad news insight- this give an extra boost.
All three factors added up to a 400 pts in the Dow IMO.
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