Fed Raising Rates, Stocks Mixed, Bank Profits Plunge

Stocks closed mixed today despite bank profits plunging 86% and FOMC minutes confirming an imminent interest rate increase to stem inflation. The DJIA climbed +26.62 to 11412.87, the Nasdaq slipped -3.62 to 2361.97 and the broad based S&P 500 added +4.67 to 1271.51.

Lehman Brothers (LEH | Quote | Chart | News | PowerRating) - The largest underwriter of mortgage bonds announced that it may set up an outside company to buy its mortgage assets causing a rally in the stock. Shares jumped 4.24% or .57 cents to $14.02/share on the news.

Coach Inc. (COH | Quote | Chart | News | PowerRating) climbed 6.67% or $1.76 to $28.16/share after the world’s largest maker of luxury handbags announced plans to buy back up to $1 billion of its shares

Corinthian Colleges (COCO | Quote | Chart | News | PowerRating) dropped 19% or $3.08 to $13.13/share due to increased lending to students caused concern costs would hurt earnings.

Darden Restaurants (DRI | Quote | Chart | News | PowerRating) - The owner of popular eateries Red Lobster and Olive Garden fell 12.52% or $4.04 to $28.22/share after first quarter profits failed to meet analyst projections.

Oil climbed $1.12 to $116.23/barrel, Gold added $3.40 to $829.10/oz and the fear gauge VIX gave back 2.24% to 20.50.

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