Last Updated: January 28th, 2009: 4:25 PM ET---The major US equity indices, fueled by an Obama "bad bank plan", closed sporting solid gains, as investors applauded not only the new administrations strategy, but the Fed's willingness to use unconventional methods in battling the fallout from the economic downturn. The Dow closed 2.5% higher to 8,375 with all but three components closing in positive territory while Citigroup (NYSE:C), Bank of America (NYSE:BAC) and JP Morgan (NYSE:JPM) all closing more than 10% higher. Meanwhile, the Nasdaq closed 3.6% higher to 1,558 and the S&P 500 closed 3.4% higher to 874. According to Bloomberg reports, the bad bank plan would be managed by the Federal Deposit Insurance Corp (FDIC) and could buy up to $1 trillion in bad assets. When the FOMC meeting adjourned Wednesday, the Federal Reserve accepted that the economy has continued to worsen and said it will continue to use unconventional means to cushion the ripple effect. Most importantly, the Fed said it is prepared to purchase longer-term Treasury securities if need be. This option was only being explored in their previous meeting. Jeffrey Lacker, Richmond Fed President, was the only member to want immediate action in regard to direct acquisition of Treasury securities. Dow component Boeing (NYSE:BA) swung to a surprising fourth-quarter loss due to the labor strike and disrupted deliveries, and announced that they expect cuts of up to 10,000 positions as the company tries to cope with worsening economic conditions. The world's second-largest airplane maker reported a quarterly loss of $56 million, or 8 cents per share, versus a profit of $1.03 billion or $1.36 per share during the year-ago period. Excluding nonrecurring items like 747 costs and litigation charge, Boeing reported a quarterly profit of 62 cents per share, still below street estimates of 78 cents per share. In financial sector action, Legg Mason (NYSE:LM) reported a Q3 ex-items loss of $4.52 per share, missing consensus estimates of $4.01 per share loss. Revenue fell 39% year-over-year to $719.89 million, falling short of consensus estimates of $826.35 million. Wells Fargo (NYSE:WFC) and Wachovia also reported a fourth-quarter loss of $11.2 billion, which includes a $2.8 billion tax asset write-down. Wellpoint, Inc. (NYSE:WLP) reported a 61% decline in its fourth-quarter net income, earning $1.34 per share, ex-items, missing consensus estimates of $1.36 per share. Revenue grew 0.7% year over year to $15.4 billion but missed consensus estimates of $15.6 billion. ConocoPhillips (NYSE:COP) reported a Q4 ex-items profit $1.28 per share, beating consensus estimates of $1.22 per share. Revenue fell 15.5% to $44.5 billion vs. estimates of $36.27 billion. In other corporate news, General Motors (NYSE:GM) announced midmorning that it was finally suspending its highly criticized Jobs Bank program, which essentially pays employees to not work. Despite a larger than expected build in oil inventory the front month contract for light sweet crude rose 1% to settle at $42.03 per barrel on the NYMEX. The Dow Jones Industrial Average closed 201 points to 8,375, the S&P 500 closed 28 points higher to 874 and the Nasdaq Composite Index closed up 53 points to 1,558.

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