A public-private partnership organized to purchase toxic subprime mortgage loan assets and other details outlined early today by Treasury Secretary Timothy Geithner appeared to drive markets to new highs.

The NYSE composite aced a 5% gain. The S&P 500 and Dow posted 4.5% and 4.4% advances. The Nasdaq composite pushed 4.2% higher.

Insurance and banking stocks held 10 of the 15 best price moves on the S&P 500 as indexes rode soft trading to fresh highs. Prudential Financial (PRU), Citigroup (C) and Bank of America (BAC) were among the exchanges' top advancing issues.

Volume continued to track softer across the board.

All but one of the 197 IBD industry groups have posted gains in the session, with 30% of the groups gaining more than 5%.

May crude oil futures pulsed up more than $1.50 to near $54 a barrel. Gold held near its morning lows.

A pair of South American stocks grabbed gains. Brazilian beer and soft drink maker Companhia de Bebidas (ABV) plowed ahead 4%. Empresa Nacional de Electricidad (EOC), a Chilean power utility, popped 3%.

Ebix (EBIX) stabbed 7% higher in heavy trading. The Atlanta-based provider of software to the insurance industry is deep in a seven-month consolidation.

On the downside, Teleflex (TFX) dived 8% in huge action. That pushed the maker of disposable medical, aerospace and marine components to its lowest mark since May '03.

12:15 p.m. Update: Stocks Hold Near Highs

BY VINCENT MAO

After running ahead for most of the morning, major stock indexes were taking a breather Monday in midsession trade.

The NYSE composite leapt 4.4%, the S&P 500 3.9%, the Dow 3.8% and the Nasdaq 3.6%.

Turnover was tracking lower across the board.

Advancers trounced decliners by 9-to-1 on the NYSE and 5-to-1 on the Nasdaq.

Financials were off session highs but still sported strong gains. Citigroup (C) trimmed a 28% gain to 16%. Bank of America (BAC) was up 14%, down from 19% at its intraday high.

Homebuilders spiked higher on the morning's upbeat housing data. Beazer Homes (BZH) and Hovnanian Enterprises (HOV) tacked on 19% each. Meritage Homes (MTH) jumped 14%.

Neutral Tandem (TNDM) climbed 4% in brisk trade, but it eased after touching a record high. The telecom service firm's earnings more than tripled in 2008. Analysts see profit rising 40% this year.

Diamond Foods (DMND) jumped 9% and regained its 50-day moving average. But resistance at the stock's 200-day line lies just ahead.

On the downside, O'Reilly Automotive (ORLY) gapped down and fell 4% after a downgrade. UBS cut the auto parts retailer to neutral from buy, but it raised the company's earnings estimates. The stock was down nearly 7% at its session low.

11:15 a.m. Update: Indexes Extend Broad, Soft-Volume Advance

BY ALAN R. ELLIOTT

Markets moved forward in quiet trading, with bank stocks holding their lead and homebuilders knocking out a solid advance on the morning's better-than-expected existing-home sales data.

The NYSE composite hammered out a 4.2% gain with the S&P 500 close behind, up 3.8%. The Dow and Nasdaq composite also pounded out broad gains, up 3.6% and 3.3%.

Adobe Systems (ADBE), Akamai Technologies (AKAM) and Baidu.com (BIDU) were among the Nasdaq 100 stocks to log big-volume advances. Citigroup(C ), General Motors (GM) and Alcoa (AA) led the Dow. American International Group (AIG) and Prudential Financial (PRU) posted the best percentage gains on the S&P 500.

Volume continued to track lower on both exchanges. Of the 197 industry groups tracked by IBD, 97% have advanced so far this morning.

Crude futures hovered essentially unchanged near $52 a barrel. Gold slipped further, down $6.50 to below $950 an ounce. Other commodities were mixed. The dollar sank vs. the euro but traded higher against the yen.

Leading stocks posted generally mild gains.

NVE (NVEC) gapped up to a 6% gain in above-average trading.