Global Rally Shines on Wall Street

On Monday, the National Association of Home Builders/Wells Fargo Housing Market Index slid to 36 in March from 39 in February, only slightly taking the wind out of Monday's rally. But still on the tips of traders' tongues and at the tops of strategists' research reports are comments about the housing market and the subprime mortgage market. Fears of a credit crunch abound, while hopes that the housing market itself may be stabilizing hang from a thread.

Tuesday brings data on February's housing starts and building permits to feed the anxious hoard, and Friday brings February's existing-home sales. Analysts expect a modest increase in housing starts and a slight decrease in building permits and existing-home sales.

On the subprime front, lender Fremont General(FMT Quote) told employees they may be out of a job in two months, Bloomberg reports, sending its shares down 9.3% on the day.

Elsewhere, Accredited Home (LEND Quote) shed 18% on reports of a possible delisting, while NovaStar Financial (NFI Quote) slid 8% on news its top five executives received restricted stock two days before the subprime lender said it would cut 17% of its workforce.

Such news is no longer igniting broad-based panic in the stock market. But it still stings investors as they worry about potential ramifications across the credit spectrum -- both for individuals (read: consumers) and for corporations.