Dow up 159 on Fed hint; New Century skips hearing
CBS News
Transcript
[Music] the Federal Reserve may have thrown nervous investors that Lifeline they were hoping for as expected the FED left interest rates unchanged Wednesday at 5 and a qu% but investors read the latest fed policy statement as implying the central bank is more likely to cut rates than raise them anytime soon that triggered a late day rally on Wall Street and the Dow catapulted 159 points higher the NASDAQ ran had nearly 48 the poster child for the flailing subprime mortgage Market will not be among the lenders at today's Senate hearing on the growing crisis New Century has refused to testify but Executives from HSBC Countrywide and First Franklin are among those who will be on hand New Century which has stopped making new loans faces a Federal Criminal probe into trading of its Securities and accounting the subprime crisis has triggered concerns that the Fallout could hurt the overall economy and we'll find out if it's getting cheaper to finance the American dream later today when Freddy Mack releases the weekly mortgage rates mortgage applications fell nearly 3% last week it's the first drop in four weeks that's despite rates holding near recent lows some analysts say it's a sign that problems with the subprime mortgage Market may be taking their toll on home sales and refinancing that's your money watch log on to cbsnews.com for more business headlines in New York I'm Alexis christopherus