Stocks Extend Gains, Morgan Stanley Freezes Home Equity, Oil Drops Again

The major US stock indexes extended their significant gains yesterday on positive earnings news and further falling oil prices. The DJIA climbed another +40.55 to 11656.32, the Nasdaq jumped +28.54 to 1289.26 and the broad based S&P 500 added +4.38 to 1289.26.

Morgan Stanley (MS | Quote | Chart | News | PowerRating) fell .22% or $0.09 to $43.10/share. Having announced it was freezing withdrawals on its client's home equity lines of credit and was hired by Freddie Mac/Fannie Mae to offer guidance in the mortgage chaos.

Freddie Mac (FRE | Quote | Chart | News | PowerRating) - The beleaguered mortgage giant collapsed 19.15% or $1.54 to $6.50/share after announcing massive losses.

Cisco (CSCO | Quote | Chart | News | PowerRating) climbed 5.78% or $1.31 to $23.96/share after the company gave highly positive guidance for the rest of 2008.

Holly (HOC | Quote | Chart | News | PowerRating) - In a strange twist of fate, the shares of this refinery company rose 10.71% or $3.05 to $31.52 after announcing a massive net income drop of 93% in the second quarter. Revenue, however, increased 43% during the quarter.

Oil fell $0.81 to $118.36.barrel, gold added $0.50 to $886.60 and the VIX fell 4.30% to 20.23.

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