The Feds multi-billion dollar rescue plan of the mortgage giants Fannie Mae and Freddie Mac was officially announced on Sunday, sending stock futures into the stratosphere. The indexes followed suit on Monday with the DJIA surging over 300 points prior to pulling back as the rescue news bolstered hopes of a near end to the financial and housing crisis. However, the stocks of Fannie and Freddie got slammed to sub $1.00 levels today. In commodities, Gasoline is trading up as Hurricane Ike approaches the coast. The DJIA ended the day up +289.78 to 11510.74, the Nasdaq added +13.80 to 2269.76 and the broad based S&P 500 climbed +25.48 to 1267.79.
Sovereign Bank ( SOV | Quote | Chart | News | PowerRating) - Fell 6.78% or $0.65 to $9.01/share due to its holdings in Fannie and Freddie.
KB Homes ( KBH | Quote | Chart | News | PowerRating) - Led the S&P 500 higher as the home builder sector soared on renewed hope that the bailout would lift the housing market. Climbing 14.07% or $2.90 to $23.51/share.
Lehman Brothers ( LEH | Quote | Chart | News | PowerRating) - Was hit hard again falling 12.65% or $2.05 to $14.15/share after Merrill Lynch increased its estimate of third quarter losses.
Zion Bancorp ( ZION | Quote | Chart | News | PowerRating) - Jumped 11.19% or $3.69 to $36.66/share after stating it has no plans to cut dividends and it will try to raise $300 million in capital.
Oil climbed $0.20 to $106.43/barrel on Ike fears, gold added $1.90 to $804.70/oz and the fear gauge VIX index 1.82% to 22.64.
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