Financial stocks rallied on Federal Reserve Chairman Ben Bernanke's hints of more rate cuts in Congressional testimony and good news for mortgage giants Fannie Mae(FNM Quote) and Freddie Mac(FRE Quote) Wednesday.
The Office of Federal Housing Enterprise Oversight said it will lift the caps on Fannie's and Freddie's portfolios, imposed amid accounting scandals at the government-sponsored mortgage buyers several years ago. The news gave investors hope the two mortgage giants will be able to buy more mortgages and inject liquidity to the markets.
The news came shortly after Fannie reported a $3.6 billion fourth-quarter loss and dismal 2008 outlook. But that bad news was further diluted by Bernanke's promise to "insure against downside risks" -- signaling that the Fed was likely to continue to slash the federal funds rate, despite inflation fears. ...
Recent Comments
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,390.11 | 1,103.25 | 2,189.61 | 34.48 |
Oil *
76.70
|
|
UP
1.21
|
DOWN
2.73
|
DOWN
4.74
|
DOWN
0.35
|
10 Yr
3.45%
SPDR Gold
113.11
|
|
+0.01%
|
-0.25%
|
-0.22%
|
-1.00%
|
Data delayed 20 minutes |
Connect with TheStreet