Can The Market Hang On To Early Bounce?
The market got a nice bounce after the open on the heels of some positive news for Fannie and Freddie. Treasury Secretary Paulson announced a plan to temporarily increase their line of credit with the Treasury, and also give the Treasury temporary authority to purchase equity in the companies.
The Plan needs to be approved by Congress. In the meantime, both companies will be able to access the Fed's discount window, something that was in question on Friday and led to the late day selloff.
Apple (AAPL) is getting a little boost after it reported that it sold over 1 million new iPhones in the first weekend. I can tell you that I stopped by AT&T stores each of the last 3 days here in L.A., but the lines were 1-2 hours long and I certainly didn't wait in them.
Anheuser-Busch (BUD) accepted a buyout offer from InBev, after the Belgian company upped its offer from $65 to $70, or $52 billion.
And IndyMac (IMB) collapsed over the weekend after a run on the bank. This is the largest bank collapse since Continental Illinois in 1984. The FDIC will now take over the institution, which got in trouble by making too many stupid, subprime loans.
Asian markets were lower overnight. The dollar is mixed today, and gold is trading higher. Oil is also up today, trading near $146. And the 10-year yield is slightly lower at 3.90%, after a big spike higher on Friday.