Durables Surprise, Fannie/Freddie Delay Rescue, Stocks Climb

An overall positive day in the stock market resulted from a surprise increase in Durable Goods Orders and unexpected good news from the mortgage front. The DJIA climbed +89.81 to 11502.68, the Nasdaq advanced +20.49 to 2382.46 and the S&P 500 added +10.12 to 1281.63.

Fannie Mae
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climbed 15.30% or $0.86 to $6.48/share she and brother Freddie Mac sold $3 billion in short term notes indicating that a government rescue may not be imminent.

Borders
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– The bookseller advanced 21.46% or $1.15 to $6.51/share after reporting a less than expected second quarter loss.

Amylin
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dropped 24.82% or $6.76 to $20.48/share as the death toll rises from its diabetes treatment, Byetta.

Quicksilver
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advanced 11.21% or $0.87 to $8.63 after the surf and ski clothing company received a $147 million binding offer for its ski equipment unit.

Oil climbed $2.10 to $118.37, gold added $4.70 to $832.80 and the fear gauge VIX fell 3.56% to 19.76.

Market Snapshot

Dow

+89.81 11502.68

NASDAQ

+20.49 2382.46

S&P 500

+10.12 1281.63

Economic
News

Chain Deflator-Prel (Q2): Consensus 1.1%, Prior 1.1%

GDP-Prel (Q2): Consensus 2.7%, Prior 1.9%

Initial Claims (08/23): Consensus 425K, Prior 432K

Personal Income (Jul): Consensus -0.2%, Prior 0.1%

Personal Spending (Jul): Consensus 0.2%, Prior 0.6%

Chicago PMI (Aug): Consensus 50.0, Prior 50.8

Mich Sentiment-Rev (Aug): Consensus 62.0, Prior 61.7

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