The major averages are up between 1.75% and 2.25% in the final hour of trading on reports that France and Germany are ready to offer a �2 trillion rescue plan for the ongoing European sovereign debt crisis at this weekend’s summit of EU leaders. Yet again, details are relatively scarce, but stocks are rallying on what one senior futures player says a squeeze on short-sellers, who were caught wrong-footed after Monday’s 2% drop after German officials poured cold water on hopes for a debt deal.
Leading the charge are financials. Goldman Sachs (GS) is up 5% despite reporting a much-bigger-than-expected third quarter loss before the opening. Bank of America (BAC) has popped nearly 10% despite its underwhelming numbers released before the open. The Select Sector SPDR-Financial (XLF) ETF is up 4.5%.
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