Stocks gain modestly despite Fannie, Freddie woes

Fannie Mae shares tumbled nearly 30 percent, while Freddie Mac shares lost about 28 percent. "The focus remains on Freddie Mac and Fannie Mae and the financials in general," said Peter Cardillo, chief market economist at New York-based brokerage house Avalon Partners Inc. He said declines in oil can help sentiment but that back-and-forth trading is "consistent with a nervous market." In late afternoon trading, the Dow Jones industrial average rose 7.73, or 0.07 percent, to 11,356.28 after being down by nearly 60 points and up more than 100. Concerns about inflation and the financial sector led the Dow to post its worst two-day performance since late June on Monday and Tuesday with an overall drop of about 310 points. Broader stock indicators were mixed in volatile trading Wednesday. The Standard & Poor's 500 index rose 0.33,... [read full story]