Stocks Rise Despite Fed’s Bearish Outlook and Freddie Mac Loss
A choppy session saw stocks close modestly higher. Early gains were wiped out after the Fed’s minutes were released, which showed the FOMC has a number of ongoing inflation and slow growth concerns. That news, coupled with Freddie Mac’s record loss, seemed enough to lead to another day of losses, but a late recovery saved the day.
Freddie Mac
(
FRE |
Quote |
Chart |
News |
PowerRating) reported a $2 billion loss for the third quarter and said it is seeking new capital (read more). Fannie Mae
(
FNM |
Quote |
Chart |
News |
PowerRating), the other colossal GSE, recently reported a $1.4 billion loss. FRE shares lost 28% and FNM shares lost 25%.
New York & Company
(
NWY |
Quote |
Chart |
News |
PowerRating) reported a loss for Q3, lowered guidance for Q4, and cut its full-year outlook (read more).
More bad news emerged from the housing market as applications for building permits fell to a 14-year low.
The U.S. dollar fell to a record low versus the euro, and crude oil surged $3 to a record high above $98 per barrel.
| Market Snapshot | ||||||||||||||||||||||||||||||||||||||||||||
|
|
Strongest/Weakest Industry Groups |
||||||||||||||||
|
Economic News |
|
|