After meandering up & down, the markets ended up thanx to a rally in the last hour. Dow gained 81, but advancers were only slightly ahead of decliners & NAZ was up a solid 23. The S&P 500 index gained 8 to 1253, still in gloomy territory. Volume on the NYSE was 1.4B, in line with recent figures but there were 456 new lows. Good vibrations from the Dow purchase, I think, helped bring back buyers in the PM. The late day rally was also helped by oil up 5.60 to 141.65. Tensions in the Mideast were heightened with Iran firing another missile. The Fannie Mae (FNM) & Freddie Mac (FRE) saga is dragging thru congress. Among solutions they're tossing around is nationalizing the companies, sort of taking them private. Everybody understands that these GSEs can not fail, but they also realize that the mortgage mess is clobbering them. Political considerations in an election year also have to be factored into any outcome.
The president of Bank of America (BAC), a Dow stock & member of the S&P 500 Dividend Aristocrat list, said their div was fine & they would not need outside financing. For the brave, they have an 11½% yield, but they have to buy from a seller who says, "I'm out of here!" Everybody is anxious for GE's Q2 report tomorrow, which will undoubtedly be a big influence on trading.
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