Fannie Mae pushes Wall Street higher (Reuters) (07-05-2008)

NEW YORK (Reuters) - After starting the day in negative territory, stocks closed the trading session with substantial gains on Tuesday as Fannie Mae's Aaa rating was re-affirmed, which reassured market participants supporting financials in general. Record crude oil prices lifted shares of energy companies, but traders otherwise shrugged off record high crude prices, and seemingly bearish headlines out of financials and homebuilders.

Talk of the possibility of Microsoft Corp resuming takeover talks with Yahoo Inc helped technology shares advance. Yahoo gained 5.5 percent, while Microsoft rose 2.1 percent, leading the S&P 500's advance.

Fannie Mae climbed almost 9 percent, and smaller rival Freddie Mac gained 7.1 percent.

Oil struck above $122 a barrel for the first time, carrying energy shares higher with it and outweighing a retreat in sectors sensitive to high fuel costs, such as airlines and retailers.

The Dow Jones industrial average finished up 51.29 points, or 0.40 percent, at 13,020.83. The Standard & Poor's 500 Index ended up 10.77 points, or 0.77 percent, at 1,418.26. The NASDAQ Composite Index closed up 19.19 points, or 0.78 percent, at 2,483.31.

  Source Reuters