Stocks Start Off 2011 With a Bang
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Stocks started out 2011 on a strong note, with all the major indices posting impressive gains.
The Dow rose 93 points, to close at 11,671. The Nasdaq rose 39 points and the S&P 500 rose 14 points.
Positive economic news and a Bank of America (NYSE: BAC) settlement with GSEs Fannie Mae and Freddie Mac were the key drivers today.
The December ISM reported showed that factory activity grew at the fastest pace since May as manufacturers produced more goods and booked more orders last month for the 17th consecutive period.
Also on the economic front, construction spending for November came in up 0.4%, or double economists expectations.
Bank of America (NYSE: BAC) jumped more than 6 percent after the company announced settlements with the GSEs over mortgage repurchase claims related to Countrywide. Bank of America is making a $1.28 billion cash payment to Freddie Mac that covers all outstanding loans and is making $1.34 billion cash payment to Fannie Mae that covers about 90% of outstanding loans. The company will take a $3 billion fourth quarter provision related to the repurchase obligations.
The Dow rose 93 points, to close at 11,671. The Nasdaq rose 39 points and the S&P 500 rose 14 points.
Positive economic news and a Bank of America (NYSE: BAC) settlement with GSEs Fannie Mae and Freddie Mac were the key drivers today.
The December ISM reported showed that factory activity grew at the fastest pace since May as manufacturers produced more goods and booked more orders last month for the 17th consecutive period.
Also on the economic front, construction spending for November came in up 0.4%, or double economists expectations.
Bank of America (NYSE: BAC) jumped more than 6 percent after the company announced settlements with the GSEs over mortgage repurchase claims related to Countrywide. Bank of America is making a $1.28 billion cash payment to Freddie Mac that covers all outstanding loans and is making $1.34 billion cash payment to Fannie Mae that covers about 90% of outstanding loans. The company will take a $3 billion fourth quarter provision related to the repurchase obligations.
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