Markets Stabilize After Wild Day

The Dow Jones average dropped over 200 points in midday trading Thursday on the heels of more sour economic data but shot back up as markets closed to finish up 12.35 points for the day. The market fell below 8,000 early in the day for the first time in two months, but news that Bank of America may receive another $15 billion from the government brought on the rally. "As soon as you saw the confirmation that they weren't going to let Bank of America become the next Lehman Brothers, everyone jumped to cover their short positions," one trader said. Overall, the economy is still reeling: jobless claims rose 54,000 to 524,000 last week and producer prices fell for a fifth straight month. Overnight, Japan's Nikkei lost 4.9%.