Dow gains 26; Greenspan warns subprime fallout to spread

CBS News

Transcript

[Music] investors built on yesterday's gains confidence in the markets seem to be building after stocks bounced back from heavy losses and that helped Wall Street ignore new signs of rising inflation the Dow closed up 26 points the NASDAQ gained nearly seven former Federal Reserve chairman Alan Greenspan is weighing in on the mortgage melt down in a speech today Greenspan said he expects the Fallout from subprime mortgage defaults to spread to the broader economy especially if home prices decline meantime the Bush Administration is preparing to punish some subprime mortgage lenders under investigation for discriminatory practices the Housing and Urban Development Department has brought several cases against lenders accusing them of predatory practices and Congress is considering new protections for consumers taking out these risky Home Loans by helping millions of families facing foreclosure and forcing big mortgage companies to give borrowers more time to repay well about getting a mortgage at Walmart the retail giant is negotiating with banks operating in its stores for the rights to offer mortgages and home equity lines of credit that's your money watch click on cbsnews.com for more in New York I'm Alexis christopherus

Dow swings 200 points; GM and H&R Block warn on subprime losses

CBS News

Transcript

[Music] investors will be bracing for more volatility today after a tital wave of selling and buying sent the Dow on a 200 Point swing for a brief time the Dow dipped below 12,000 for the first time this year before clawing its way back growing problems in the mortgage Market triggered the initial selloff General Motors and H&R Block joined the growing course of companies warning about losses from subprime loans gone bad in the end the Dow finished to Rocky day up 57 points the NASDAQ Composite Rose 21 inflation will take center stage on Wall Street today with a report on wholesale prices a benign report will renew hopes for an interest rate cut when the Federal Reserve meets next week no jail time for huet Packard's former chairwoman the California Attorney General's office has agreed to let Patricia dun and three others plead guilty to misdemeanor charges for their role in the HP Corporate spying case HP illegally obtained private phone records of directors employees and journalists as part of a probe into corporate leaks The Fallout led to the departure of several HP Executives including D and another record for the Harry Potter series the newest offering from JK Rowling will have a record-breaking 12 million copies printed in the first run according to publisher Scholastic the last Potter book sold nearly 7 million copies in the first 24 hours Harry Potter in the Deathly Hallows hits shelves July 21st that's your money watch click on CBS news.com for the latest business headlines in New York I'm Alexis christopherus