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Closing Bell: 08.08.07

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Closing Bell brought to you by Financial Times
To recap the rollercoaster that was today – the major indexes surged over 1% higher, then everyone got back to work. The clouds lifted, but credit jitters and doubts that Fannie Mae and Freddie Mac would get regulatory permission to buy mortgage loans sent everything near flat again. Then everyone chilled out and despite rumors of stat arb fund hell and grumbling about the Fed’s inaction, the major indexes surged upward again in the last hour of trading.
To close the day, the Dow finished up 1.1%, the S&P up 1.4% and the Nasdaq up 2.0%, with techs helped by Cisco’s 25% income gain and nearly 7% rise in share price.
Today marked a run of four out of five ‘up days’ for the major indexes, but the nutty volatility has many investors worried that there are still a lot of tests the market has to pass (a rate cut by the end of the year and the $300 billion worth of LBO debt that starts to hit the market in September) before the bears can be chased out of the woods.
Zen and the art of market maintenance every day, from FTAlphaville