Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook
Guy Buys $123 Safe on eBay, Finds $26,000 Inside Seller tries to get half the cash back, fails »

Rate-Freeze Plan Lifts Stocks

Financial companies and builders lift the markets

By Sam Gale Rosen,  Newser Staff

Posted Dec 6, 2007 3:29 PM CST
Email

(Newser) – Stocks leaped again today after the Treasury Department's plan to freeze some mortgage rates eased fears of a recession. Investors also continue to expect that the Fed will cut interest rates on Dec. 11, the Wall Street Journal reports. The Dow was up 174.93 to 13,619.89, the Nasdaq 42.67 to 2,709.03, and the S&P 22.33 to 1,507.34.

"The market is sensing that both the government and the Fed are sufficiently focused on the subprime issue and are taking collective action,'' says a manager. Financial companies—including Countrywide and Fannie Mae—and builders lifted markets the most on expectations of strong bank profits and an easing housing slump.

The Countrywide Banking and Home Loans office is seen in Glendale, Calif. in this April 26, 2007 file photo. (AP Photo/Damian Dovarganes, file)
The Countrywide Banking and Home Loans office is seen in Glendale, Calif. in this April 26, 2007 file photo. (AP Photo/Damian Dovarganes, file)   (Associated Press)
Stocks leaped for the second day today.
Stocks leaped for the second day today.   (Getty Images)
Investors also continue to expect that the Fed will cut interest rates on Dec. 11th.
Investors also continue to expect that the Fed will cut interest rates on Dec. 11th.   (Getty Images)
Treasury Secretary Henry Paulson, right, looks on as President Bush makes a statement about subprime mortgages, Thursday, Dec. 6, 2007, in the Roosevelt Room of the White House in Washington. (AP Photo/Charles Dharapak)
Treasury Secretary Henry Paulson, right, looks on as President Bush makes a statement about subprime mortgages, Thursday, Dec. 6, 2007, in the Roosevelt Room of the White House in Washington. (AP Photo/Charles...   (Associated Press)
President Bush, center, flanked Treasury Secretary Henry Paulson, right, and Housing and Urban Development Secretary Alphonso Jackson, makes a statement to reporters about subprime mortgages, Thursday, Dec. 6, 2007, in the Roosevelt Room of the White House in Washington. (AP Photo/Charles Dharapak)
President Bush, center, flanked Treasury Secretary Henry Paulson, right, and Housing and Urban Development Secretary Alphonso Jackson, makes a statement to reporters about subprime mortgages, Thursday,...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

Strategist: "It's a step in the right direction"
MarketWatch

 
stock market • Fannie Mae • mortgage rate freeze

More Newser Stories

US Stocks Soar on Fannie/Freddie Takeover

Stocks Rally Strong on Fannie, Freddie Takeover

Dow Plunges 239 Points

Stocks Rally After Fannie Mae Woes

Stocks Take a Ride, End Up
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne