More market rally

This Bloomberg article tells it all:
  • Fannie Mae and Freddie Mac, the largest sources of financing for U.S. home loans, each jumped more than 7 percent after the Securities Industry and Financial Markets Association said larger loans financed by the two companies will be allowed in the main market for mortgage bonds.
  • PMI Group Inc., the second-biggest mortgage insurer, rallied 49 percent on plans to raise cash by selling businesses.
  • General Motors Corp. climbed the most in a month on falling oil prices and the automaker's plan to accelerate a cost-cutting program.
  • The S&P 500 Financials Index rallied 2.6 percent even after Morgan Stanley and JPMorgan Chase & Co. agreed to pay fines and buy back auction-rate securities that state regulators said were fraudulently sold to investors
  • An index of 15 homebuilders in S&P indexes rallied 4.4 percent.
  • GM had the steepest gain in the Dow, climbing 11 percent to $11.35.
  • Ford, the world's third largest automaker, increased 4.5 percent to $5.10.
  • Gannett Co. had the biggest gain in almost 21 years, climbing 11 percent to $21.31. The largest U.S. newspaper publisher plans to eliminate about 1,000 positions at its U.S. community newspapers as advertising sales continue to decline.
  • the Labor Department said consumer prices increased 0.8 percent in July, double the forecast of economists in a Bloomberg survey. So-called core prices, which exclude food and energy, advanced 0.3 percent last month, also more than projected.
  • First-time applications for jobless claims were 450,000 in the week ended Aug. 9 and the total number of people receiving benefits climbed to an almost five-year high.
  • Earnings have slumped 23 percent on average for the 438 companies in the S&P 500 that released second-quarter results since July 8, according to data compiled by Bloomberg.
  • Existing U.S. home sales fell 16 percent to a 10-year low in the second quarter and the median price for a single-family house dropped 7.6 percent
Basically, all the bankrupt companies soared, it seams like some people are trying to do some bottom fishing.

More on bottom fishing in another post.

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