* Citigroup , another Dow component, reported a quarterly net loss of $8.29 billion and said it would split into two operating units to shed troubled assets. Bank of America shares rose 7.2 percent to $8.92 while Citigroup gained 8.6 percent to $4.16.

* The Dow Jones industrial average <.DJI> was up 87.45 points, or 1.06 percent, at 8,299.94. The Standard & Poor's 500 Index <.SPX> was up 10.86 points, or 1.29 percent, at 854.60. The Nasdaq Composite Index <.IXIC> was up 21.04 points, or 1.39 percent, at 1,532.88.

(Editing by James Dalgleish)