Dow surges 391 points

CNBC's Mary Thompson - The bulls took charge on this first day of second quarter big gains in financials drives another triple digit gains for the Dow. The blue chip averages 391 points gains, its bear start to a quarter since the fourth quarter of 2002, all of the Dow’s 30 component finished higher today. The S&P 500 also closed up 47.5 points and the Nasdaq added 83 points.

In the investment bank the Lehman Brothers and UBS were among the biggest gainers. Lehman raised USD 4 billion and UBS is raising USD 15 billion. Companies are doing this to shore up their balance sheet, this news boosted investor confidence that the firms are going to be able to weather the credit crunch. Lehman jumped 18% and UBS finished up almost 15%. That news triggered a rally in other financial stocks including the biggest source in mortgage funds Fannie Mae and Freddie Mac.

On the Nasdaq Microsoft rose over 4% after it said that it has no plans to raise its USD 44 billion bid for Yahoo and Yahoo dropped on this news.  

Wall Street action:

• Big gains in financial stocks drives triple digit gains for Dow
• All 30 components of Dow finished higher
• S&P 500 up 47 pts and Nasdaq added 83 pts
• Manufacturing edges up, while construction slows
• PMI rose to 48.6 Vs 48.3 (MoM)
• Lehman Bros & UBS were biggest gainers
• Lehman raises $4 bn, UBS says its raising $15 bn
• Cos are doing this to shore up balance sheet, boosted investor confidence that banks will be able to weather credit crunch
• Lehman up 18%, UBS up 15%
• News triggered other mortgage funds like Freddie Mac & Fannie Mae
• Microsoft says its has no plans to raise its $44 bn bid for Yahoo!
• Yahoo dropped on this news