Volatile Markets, Fannie Mae Plunges, Yahoo Jumps

Indexes closed down today in a wide swinging, volatile session. Sub Prime concerns and dropping oil prices threw the market violently in both directions, prior to closing, with the DJIA ending down -56.58 to 11231.96, the Nasdaq dipped -2.06 to 2243.32 and the S&P 500 slipped -10.59 to 1252.31.

Fannie Mae
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collapsed 16.19% or $3.04 to $15.74/share when it was discovered that it may need to raise $75 billion in new cash, along with Freddie Mac, due to write downs and accounting rule changes.

Yahoo
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jumped 12.88% or $2.75 to $24.10/share on Microsoft’s statement that it may renew takeover talks with the search giant.

NetApp Inc.
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grew by 5.61% or $1.23 to $23.18/share due to an analyst upgrade from neutral to outperform.

Lehman Brothers
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fell 9.98% or $2.28 to $20.57/share due to an energy pricing company placing them under review and blocking trading access to certain oil contracts, per Reuters.

Oil fell over $5.00/Barrel today, prior to bouncing back to end the session down $3.63 to $141.66/barrel. Gold fell $4.80 to $928.80/oz and the VIX broke technical resistance at 26, hitting a high of 26.87 prior to pulling back, closing up 3.83% to 25.75.

Market Snapshot

Dow

-56.58 11231.96

NASDAQ

-2.06 2243.32

S&P 500

-10.59 1252.31

Economic
News

Pending Home Sales (May): Consensus -2.8%, Consensus 6.3%

Wholesale Inventories (May): Consensus 0.6%, Prior 1.3%

Consumer Credit (May): Consensus $7.0B, Prior $8.9B

Crude Inventories (07/05): Consensus NA, Prior -1982K

Initial Claims (07/05): Consensus 395K, Prior 404K

Export Prices ex-ag (Jun): Consensus NA, Prior 0.4%

Import Prices ex-oil (Jun): Consensus NA, Prior 0.5%

Trade Balance (May): Consensus -$62.2B, Prior -$60.9B

Mich Sentiment-Prel (Jul): Consensus 55.5, Prior 56.4

Treasury Budget (Jun): Consensus $33.0B, Prior $27.5B