JIM LEHRER: A rally on Wall Street got new life today. Stocks soared for a second day, as the Federal Reserve's number-two official hinted at another interest rate cut.
The Dow Jones Industrial Average gained 331 points to close at 13,289. The Nasdaq rose 82 points to close at nearly 2,663.
The market was also helped by oil prices tumbling 4 percent to finish under $91 a barrel. Oil has fallen $7 since last week, amid signs U.S. supplies are improving, while demand is easing.
President Bush promised full support today for a new Middle East peace effort. Israeli and Palestinian leaders agreed yesterday in Annapolis, Maryland, to restart negotiations. They set a goal of reaching a settlement by the end of 2008.
Today, Mr. Bush stood with Israeli Prime Minister Olmert and Palestinian President Abbas in the White House Rose Garden, and he made this vow.
GEORGE W. BUSH, President of the United States: One thing I've assured both gentlemen is that the United States will be actively engaged in the process, that we will use our power to help you as you come up with the necessary decisions to lay out a Palestinian state that will live side by side in peace with Israel.
JIM LEHRER: Later, National Security Adviser Stephen Hadley said the president will help build confidence but will not force an agreement.
And Secretary of State Rice announced retired Marine General James Jones will serve as special envoy to the peace talks. Jones was once NATO's supreme commander in Europe. In his new post, he'll focus on security issues involving Israel, the Palestinians, and neighboring states.
The president of Iran today condemned the Annapolis conference. In Tehran, Mahmoud Ahmadinejad insisted Israel is "doomed" to collapse, and he called the conference a "failure."
MAHMOUD AHMADINEJAD, President of Iran (through translator): The Annapolis conference holders just want to make a political show and say that they managed to gather leaders of Arab countries and the Zionist regime of Israel to sit at a table.
This is not an achievement. We should see what is happening on the ground. The Arab countries should ask for the opinions of their people. They should hold a referendum and see whether or not their people agree with the attendance of their leaders in this conference.
JIM LEHRER: The Iranian leader also said it was a mistake for Syria to take part in the conference. The Syrians are Iran's closest Arab ally.
In turn, Arab nations, including Syria, warned the U.S. must insist on progress in the talks or risk a backlash in the Arab world. We'll have more on the Middle East story right after this news summary.
Authorities in Saudi Arabia announced today they've arrested more than 200 terror suspects. It was the largest such roundup yet in the Saudi kingdom. The suspects allegedly had ties to al-Qaida. Officials said they were connected to a series of plots, including an imminent attack on oil sites. The interior minister said they've been arrested in recent months.
President Musharraf of Pakistan gave up his job as military commander today. That paved the way for him to be sworn-in for another term as president, this time as a civilian. He surrendered the post as head of the armed forces in an elaborate and emotional ceremony. And he reviewed the troops one last time.
PERVEZ MUSHARRAF, President of Pakistan (through translator): I, today, after 46 years of being in uniform, say good-bye to the army. From tomorrow, I will not be in command, but I am definitely happy about one thing, and that is that I spent these 46 years with a lot of dignity and happiness.
JIM LEHRER: Musharraf seized power in a coup in 1999. The opposition had long demanded he resign from the army. And today, former Prime Minister Bhutto said he had finally done the right thing.
BENAZIR BHUTTO, Former Pakistani Prime Minister (through translator): We welcome Musharraf's decision to shed his army uniform. One person was holding two positions. Now the Pakistani army has a fully fledged army chief, and they can perform their duties in a better way.
JIM LEHRER: In Washington, White House spokeswoman Dana Perino said President Bush considered Musharraf's action a "good step." And in London, British Prime Minister Brown said it was an "important part" of plans to restore constitutional rule.
In Iraq today, nearly 6,000 Sunnis formed a new security pact with the U.S. military against al-Qaida and others. They agreed to man 200 checkpoints southwest of Kirkuk. Militants have fled there from Baghdad and western Iraq. The pact is the latest, and possibly largest, involving Sunni tribes who've turned against al-Qaida.
More than 800 Iraqi refugees were expected back in Baghdad late today. They were part of a government-funded convoy of buses that traveled overnight from Syria. The Iraqi government said today 60,000 refugees have returned home in the past month. It said it expects at least that many more in the coming weeks.
French President Sarkozy today denounced the riots in the suburbs of northern Paris. The violence lessened overnight after a show of force by police. Sarkozy vowed to punish rioters who had fired on police, wounding at least 30.
He spoke to reporters after visiting wounded officers today at a hospital near the scene of the trouble.
NICOLAS SARKOZY, President of France (through translator): So that things are very clear: What has happened is absolutely unacceptable and won't be accepted. Those who take the responsibility to shoot at civil servants will be brought to account before justice. It has a name. It is called an attempted assassination.
JIM LEHRER: The riots first broke out Sunday after two teenagers were killed in a collision with a police car. That sparked new anger by ethnic minorities against the mostly white police force. Sarkozy said an investigation is underway into that incident.
President Bush's top economic adviser, Al Hubbard, resigned today. He planned to step down as director of the National Economic Council by year's end. It was the latest in a string of departures from the administration. The council's new director will be Keith Hennessey, who is now Hubbard's deputy.
