Blue Chips Hop Slightly on Fed Confidence

Treasury yields crash as winners prevail for third straight day
By Kevin Spak,  Newser Staff
Posted Aug 20, 2007 5:05 PM CDT
Federal Reserve Board Chairman Ben Bernanke testifies on Capitol Hill in Washington, in this July 18, 2007 file photo, before the House Financial Services Committee. The Federal Reserve approved a half-percentage...   (Associated Press)
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(Newser) – The Dow was up 42.27 to close at 13,121.35, as winners outnumbered losers about 7 to 6—the third straight positive day on Wall Street. But short-term treasury yields plummeted as speculation increased that the Fed will cut the benchmark rate at its next meeting. Volume on the market was low—about 1.5 billion—as retail and mining led the charge.

Lowe's soared on better-than-expected earnings and Freeport-McMoRan added value after investors sought out precious metals. After being hit on the mortgage market, KKR was up almost 9% after it announced it would sell shares to raise cash. The Nasdaq climbed 3.56 to 2,508.59; the S&P was down 0.39 to 1,445.55.