Geithner talk gooses U S stocks

Stocks rallied Friday, with the Dow industrials closing up 494 points after reports surfaced that President-elect Barack Obama will nominate New York Federal Bank President Timothy Geithner as his new Treasury secretary. Geithner was the Fed's point person on the rescue of Bear Stearns and AIG. Selkin said that investors are betting that he might help broker a deal this weekend to save Citigroup too. "It's not just that Wall Street likes Geithner, it's that there's relief that the incoming administration is taking some concrete steps to deal with the crisis," Selkin said. Citigroup had led the financial sector lower through most of the session, before the 3:00 p.m. turnaround. Although many of the stocks recovered by the close, Citigroup remained in the red, posting losses of 20% on top of the 26% it posted Thursday. Stocks rallied in the morning on reports that troubled Citigroup might put itself up for sale. But the company's CEO shot down the rumors in a call with senior managers, sending Citi's shares and the broader market lower.