Stocks boosted by positive news regarding Fannie Mae and Freddie Mac

U.S. stocks and bond prices rose after Fannie Mae and Freddie Mac received positive news from regulators which may open up another source of financing.

 

This news helped financial shares rise, and helped the market offset a higher-than-forecasted increase in inflation and initial jobless claims. Energy shares were lower after the price of crude oil fell on concern demand may slow.

 

 The Dow Jones industrial average was         up         82.97 .. at 11615.93.

 

 The Standard & Poor's 500 index was          up          7.10 .. at  1292.93.

 

 The Nasdaq composite index was               up         25.05 .. at  2453.67.

 

 The Transportation Average was               up         78.76 .. at  5149.07.

 

 And Utilities were                         down          5.03 .. at   464.87.

 

Volume on the New York Stock Exchange was moderate, with 1.0 billion shares traded.  Advancing issues outnumbered decliners by a 7-to-4 margin.

 

 THE 5 MOST ACTIVE ISSUES ON THE NEW YORK STOCK EXCHANGE AS OF 3:10 CT WERE

 BANK OF AMERICA CORP                    UP $ 1.32       TO.. $ 30.18

 CITIGROUP INC                           UP $ 0.27       TO.. $ 18.08

 KRAFT FOODS INC                       DOWN $ 0.17       TO.. $ 32.69

 WELLS FARGO & CO                        UP $ 0.88       AT.. $ 30.17

 GENERAL ELECTRIC CO                     UP $ 0.21       TO.. $ 29.52

 

The 30-year Treasury rose 23/32, lowering the yield to 4.51%. The 10-

year Treasury rose 11/32, lowering the yield to 3.89%.  The 3-month T-Bill closed at 1.85% and the 6-month T-Bill closed at 1.95%.

 

In commodity markets, Gold fell $17.00 to $814.50 and Silver fell $0.62 to

$14.36.  Crude oil prices fell $0.99 to $115.01 per barrel on the New York

Mercantile Exchange.

 

 

LOOKING AT OTHER DEVELOPMENTS:

 

Wal-Mart Stores announced a 17 percent increase in second-quarter profit as

cash strapped shoppers sought out low prices. The company earned $0.86 a

share, compared with $0.77 a share a year earlier. In addition, the company raised its full-year earnings forecast to a range of $3.43 to $3.50 a share,

up from a previous company forecast of $3.30 to $3.43 a share. Wal-Mart

closed up $0.22 to $58.10.

 

 

J.M. Smucker Co. announced first-quarter profit increased 3.8 percent after the company raised prices and sales increased by 18 percent.  On a per share basis, the company earned $0.82, compared with $0.77.  The company stated "We are experiencing sales growth across most of our brands despite taking significant price increases to offset record raw materials costs." J.M. Smucker Co. closed up $3.84 to $54.34. Estee Lauder (ES-TAY LAH-DUHR) stated fourth-quarter profit rose 36% on sales of skin lotions and lipstick in Europe and Asia.

 

 

 

New York-based Estee Lauder reported quarterly earnings of $0.61 a share, compared with $0.45 a share a year ago. For fiscal 2009, the company said it expects earnings per share of $2.57 to $2.72. Estee Lauder closed up $6.29 to $51.25.

 

At the close, foreign markets were mostly higher today.

 Canada's S&P/TSX Composite was            down   18.31 to close at 13358.91.

 Mexico's Bolsa index was                    up  370.38 to close at 27247.45.

 Britain's FTSE 100 Index was                up   48.80 to close at  5497.40.

 France's CAC 40 Index was                   up   17.94 to close at  4420.91.

 Germany's DAX Index was                     up   20.02 to close at  6442.21.

 Japan's market was                        down   66.25 to close at 12956.80.

 Hong Kong's market was                      up   99.39 to close at 21392.71.

-------