TODAY'S TOP STORY
Associated Press
NEW YORK – Stocks wavered Wednesday as investors
paused a day after the market's huge rally and digested better-than-expected results at Morgan Stanley that eased concerns about the investment banking sector.
News that the government plans to free up billions of dollars at Fannie Mae and Freddie Mac, a move that could help struggling homeowners, also quelled some of the market's fears.
Investors sent stocks charging higher Tuesday on stronger-than-expected
investment bank results and several moves from the Federal Reserve, including a 0.75 percentage point rate cut, aimed at jump-starting the credit markets. Some profit-taking was to be expected after the huge gains that saw the Dow Jones industrials shoot up 420 points.
Morgan Stanley's earnings indicated that the bank is relatively healthy like Lehman Brothers Holdings Inc. and Goldman Sachs & Co., rather than at risk of failure like
Bear Stearns Cos. JPMorgan Chase & Co. struck a deal Sunday to acquire Bear Stearns, which was on the verge of succumbing to credit troubles.
Full story
| MORE HEADLINES | | TOMORROW As a first-time entrepreneur, Tony Alardin welcomed the advice — and, later, the money — of a close friend who already ran his own business, but the partnership ran into trouble
down the road. Read more in tomorrow's Business section. |
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