Bailout boosts Wall Street
Wall Street reacted positively to news of the federal action to put Fannie Mae and Freddie Mac into conservatorship, with home channel companies showing particular strength. Shares of Home Depot and Lowe’s gained 5.5 percent and 6.3 percent, respectively, on Monday.
Home Depot CEO Frank Blake, whose company increased $1.57 to $30.16, said the bailout of the two government sponsored enterprises announced over the weekend was a “necessary step,” according to Reuters. At Lowe’s, the share price jumped $1.61 to $27.36.
Other home channel companies showing big percentage gains following the news of the bailout include Builders FirstSource, up 14.5 percent; Masco Corp., up 8.4 percent; Huttig Building Products, up 6.0 percent; and USG Corp., up 6.0 percent. The Dow Jones Industrial Average jumped 2.6 percent Monday, finishing at 11,510.