Lower oil prices lifts stocks

This is one of those go figga kind of days. Fannie Mae (FNM) reports an uglier loss than expected but markets are up on good news about lower oil prices. Dow is up 188, advancers over decliners a more modest 2-1 while NAZ is up 39. Oil dropped 3½ to the 116s encouraging stock buyers to charge forward. Oil is now down 30 from its recent peak.

Fannie Mae reported a 2.3B Q2 loss, more than triple expectations. Among the many questions around FNM are: when will the bleeding stop, how much added money will they need & will they need even further additions to capital? Their chart tells a dreary story especially in the last few years:

Fannie Mae

Banks are up but surprisingly only moderately on a big rally day. REITs in sympathy are up, but not as much as might be expected. The Alerian MLP index is down pennies, on lower oil prices, flirting with its new 52 week low set a couple of days ago.

Macro economic conditions drone on. Housing & autos, 2 large industries, are in a severe recession, retail sales are sluggish at best & the financial loan picture is gloomy. Let's see what the PM holds for stocks.