Wall Street Can't Shake Losses

Stocks on Wall Street started the new year on a positive note Friday, posting solid gains in the first trading session of 2009. At the same time equities rallied, longer-dated U.S. Treasury securities fell hard. They continued downward on Monday as the 10-year note gave up 1/32 to yield 2.5%, and the 30-year plunged 5 3/32 to yield 3%.

Intending to "support the mortgage and housing markets and foster improved conditions in financial markets more generally," the Federal Reserve Bank of New York said Monday that it has begun buying fixed-rate mortgage backed securities guaranteed by Fannie Mae (FNM Quote), Freddie Mac (FRE Quote) and Ginnie Mae in a program first announced in late November.

The New York Fed said summary data on its purchases would be available on its Web site beginning on Thursday and updated weekly.

On a much larger scale, advisers of President-elect Barack Obama said the new administration's $775 billion stimulus plan would likely include tax cuts of $500 to $1,000 for middle-class individuals and couples, and that tax cuts for workers and businesses could total $300 billion, according to a report in the New York Times.

Elsewhere in Washington, the House Financial Services Committee held a hearing Monday questioning how the Securities and Exchange Commission failed to detect an alleged $50 billion investment fraud by Bernard Madoff.

Meanwhile, Apple (AAPL Quote) CEO Steve Jobs wrote a letter to the "Apple Community" saying that a hormone imbalance has been robbing him of the proteins his body needs to be healthy.

Technology buffs and investors are watching this week as Apple is expected to unveil new products at Macworld in San Francisco. Prior news that Jobs would not deliver the Macworld keynote "set off another flurry of rumors about my health, with some even publishing stories of me on my deathbed," Jobs wrote in his letter. Apple shares tacked on 4.2% to $94.58 Monday.