US markets end with triple digit gain

CNBC's Margaret Brennan - A dramatic late day rally with the Dow jumping triple digits closing up 135 points, thanks to gains by financial shares Wells Fargo, Lehman Brothers, Bank of America and US Bank all posted double digit gains. Wachovia shares jumped 27% despite their company posting a record loss of more than USD 8 billion in second quarter. The bank also announced that they would lay off more than 6,000 employees.

The Nasdaq and tech shares gained by 24 points but it was dragged down a bit by Apple, which issued a weaker than expected outlook for the fourth quarter, shares down more than 2.5%.

Crude oil took a more than 2% tumble settling at its lowest price since the beginning of June as fears of tropical storm Dolly threatened oil installation and that fears have started to dissipate, no longer considered a threat and that hit shares of Exxon Mobil and Chevron they traded down, as the price of oil also decreased.

Caterpillar posted a more than 2% gain after announcing that emerging market growth helps to get 34% rise in net profit. The industrial giant Dupont also had overseas growth of 23% sales gains and the shares go more than 2% higher on the day.

After the bell Washington Mutual posted a net loss of USD 3 billion and said that the remaining cumulative losses is residential mortgage portfolios will be towards the upper end of the range, shares is gaining after hours.

Yahoo’s second quarter profit and sales fell short of estimates. The company reported after the close of the session their net income fell to a USD 131 million, shares are trading slightly lower on that news.

E-trade Financial reported a loss of 19 cents a share, the hit with mortagage portfolio is higher than the company expected and the shares are trading down after hours.

Wall Street action

Dramatic late rally, Dow closes up 135 pts
Financial stocks post double digit gains
Wachovia jumps 27% despite $1 bn loss
Nasdaq gains by 24 pts
Crude down more than 2% on demand concerns