Stocks Rebound Despite Fannie Mae Losses, $122 Per Barrel Oil Price

May 7, 2008 12:26 a.m. EST

New York, NY (AHN) - Investors were unperturbed by Fannie Mae's $2.1 billion loss and a new record $122-per-barrel oil price as Wall Street wound up higher on Tuesday's trading.

The Dow Jones Industrial Average went up 51 points to finish at 13,021. The Nasdaq Composite Index rose 19 points to close at 2,483 while the S & P 500 Index gained 11 points to end at 1,418.

S&P 500 shares recovered from a decline in early trading despite Fannie Mae's conference call revelation of a larger-than-expected first-quarter loss, dividend slash and a $6 billion recapitalization. Setting investors' positive mood was the government-backed mortgage giant's statement that it was getting a handle on its balance sheet, according to Marketwatch.com.

The Nasdaq was propped up by news that Microsoft Corp. will renew its takeover bid of Yahoo Inc.

Meanwhile, on the New York Mercantile Exchange, crude oil futures rose by $1.87 to $122 per barrel. Oil futures rose by $3.60 cents to finish at $878 an ounce.