News Today - May 19

* Wall Street rallies after positive news about the U.S. housing market, including an upbeat profit forecast from Lowe's, as well as an upgrade of Bank of America, encouraged investors to step back into the market after last week's selloff. full story

* With signs that China’s massive economic stimulus plan is beginning to take hold, some strategists are suggesting that investors focus on a country that is already bolstering global markets.

* The Obama administration plans to combine California’s tough new auto-emissions rules with existing fuel economy limits to create a single new national standard.

* Commercial real-estate loans could generate losses of $100 billion by the end of next year at over 900 small and midsize U.S. banks if economic woes deepen, according to a Wall Street Journal analysis.

* Goldman Sachs, Morgan Stanley and other banks have applied to repay billions of dollars they borrowed under the U.S. government's Troubled Asset Relief Program, sources familiar with the situation said.

* The rupee surged over three percent on Monday, posting its biggest gain in more than 11 years on hopes of reforms and renewed capital flows from foreign funds after the ruling UPA coalition got a decisive mandate back to power.