IBT Staff Reporter

Stocks rallied on Wednesday as financial shares extended their comeback for a second day, helped by remarks by a Federal Reserve official that raised hopes of an interest rate cut. Financials were leading the Dow and S&P following Fed Vice Chairman Donald Kohn's comments. The group has struggled under tight credit conditions.

Citigroup Inc got a call from a prominent investment banker suggesting a merger with Bank of America Corp as it was dealing with billions of dollars in mortgage-related losses and the departure of Chief Executive Charles Prince, Citigroup's board dismissed the informal approach as totally out of hand and no discussions have taken place, according to a report.

General Pervez Musharraf finally quit as Pakistan army chief on Wednesday, trading the post for a second five-year term as president and fulfilling a promise many Pakistanis doubted he would keep.

As consumers flooded to Apple Inc's retails stores this holiday weekend, the firm's widescreen media player garnered the most interest of all the electronic devices, however the buzz did not translate into strong sales for iPhone's cousin.

Big business is shoveling more money than ever into U.S. political campaigns, with Wall Street donations way up, a watchdog group said on Tuesday. The securities and investment industry -- which includes brokerages, hedge funds and private equity firms -- registered the sharpest increase in giving since 2004 among all industry sectors.

Verizon Wireless said on Tuesday it will provide unrestricted access on its network to devices and applications from any company.

In an effort to boost sales, advertisers are exploring new technologies to provide consumers with more relevant ads in emerging platforms such as mobile phones and TV/ web hybrids.

U.S. search engine giant Google plans to offer internet users access to online storage services, a move which provides a boost to web computing and encroaches on Microsoft's territory, according to a report.

Wells Fargo & Co, the second-largest U.S. mortgage lender, said on Tuesday it would take a $1.4 billion fourth-quarter charge largely related to losses on home equity loans as the nation's housing market deteriorates.

A new website wants to pay you $10 for using your likeness for a week to promote a charity of your choice.

In a move that could eventually lower its energy costs and boost environmentalism, the world's top Internet search provider, Google, said Tuesday it will invest tens of millions of dollars next year in renewable energy technologies such as solar and wind power.

Citigroup Inc's decision to raise $7.5 billion in capital is a signal to analysts and investors that the largest U.S. bank is likely to have a rough fourth quarter -- perhaps even worse than it has projected. Citigroup may not be overpaying for the capital, according to convertible bond experts, but if the bank was ready to post excellent results in coming quarters, it would not likely be paying 11 percent a year for money from Abu Dhabi, investors said.

Steve Jobs has been named the most powerful person in business for 2007, according to a new list compiled by Fortune Magazine

Two-year Treasury notes fell on Tuesday as Abu Dhabi’s $7.5 billion investment in Citigroup sent stocks higher, dropping demand for the bond as a hedge against inflation.

Gold dropped on Tuesday, with lower demand for the metal as a hedge against inflation triggered by a drop in energy prices.

UK car dealer Pendragon has issued its second profit warning in five months, saying the company expects to miss full year profit targets by £12 million.

Game console makers, Microsoft and Nintendo, were under attack from Greenpeace as the environmental activist group said they are taking too long to remove toxic chemicals from their products.

Chilean stocks fell in early afternoon trade on Tuesday, as Chile's giant private pension funds (AFPs - the Association for Financial Professionals) sold stocks, while the peso weakened against the dollar.

Verizon Wireless announced Tuesday plans to allow its customers to freely use mobile devices and software from other companies by the year 2008.

The U.S. dollar was higher against the euro, the yen and the Swiss franc on Tuesday following news that Citigroup Inc. will sell a $7.5 million stake to Abu Dhabi Investment Authority.

The Nasdaq Composite Index rose $36.16, or 1.4 percent to 25775.15, while the Philadelphia Semiconductor Index rose 2 percent, or $8.01 to $410.38 by mid-day.

Oil fell below $95 a barrel on Tuesday as investors bet that the OPEC exporter group will boost supply for a second time this year at a meeting next week to cool near-record prices.

U.S. stocks rebounded during Tuesday mid-day trading following news that Abu Dhabi Investment Authority's would invest $7.5 billion in Citigroup Inc, raising investor confidence in the bank.

Housing and credit troubles took more of a toll on the U.S. economy as prices on pre-owned single-family homes tumbled in the third quarter and consumer confidence in November sank to a two-year low, reports on Tuesday showed.

For one Hollywood studio there is a lot riding on The Golden Compass, the $180 million adaptation of Philip Pullman's novel Northern Lights.

High definition movie DVDs in the Blu-ray format have outsold the rival HD DVD standard in Europe this year, breaking the 1 million barrier and constituting 73 percent of all HD movie discs sold.

General Electric Co.'s NBC Universal agreed to start offering interactive advertising services and subscribe to a ratings service from TiVo Inc, the companies said on Tuesday.

A pearly white robot that looks a little like E.T. boosted a man out of bed, chatted and helped prepare his breakfast with its deft hands in Tokyo on Tuesday, in a further sign robots are becoming more like their human inventors.

Pakistan's General Pervez Musharraf said farewell to military colleagues on Tuesday as he prepared to become a civilian president ahead of January's general election.