Stocks Rally After Fannie Mae Woes

Markets make modest gains, led by energy sector
By Sam Gale Rosen,  Newser Staff
Posted May 6, 2008 3:30 PM CDT
A tanker ship, the "Tikhvin", from Monrovia, fully loaded with Naphtha, a petroleum byproduct, sailing toward it's destination in the Port of Corpus Christ.   (AP Photo/Paul Iverson)
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(Newser) – Stocks rallied and recorded modest gains today after initially falling on on bad news from Fannie Mae. But analysts cautioned against excessive optimism. "The fact that we're not imploding doesn't me that we're OK," a strategist told the Wall Street Journal. The Dow ended up 51.29 at 13,020.83, the Nasdaq 19.19 at 2,483.31, and the S&P 500 10.77 at 1,418.26.

Energy stocks led the recovery despite a Goldman Sachs analyst's warning of oil prices reaching $200 a barrel. Financials also recovered, despite leading the plunge earlier in the day. "Happy days probably aren't here again, and they probably won't be here in six months, either," said one skeptical investor.