Stocks eke out gains
Though stocks as a whole were up, financial stocks were under pressure, with Bank of America and JPMorgan Chase both down.
August 30th, 2011
08:40 PM ET

Stocks eke out gains

Some highlights from the day's business news:

Investors were more optimistic Tuesday afternoon after the Federal Reserve's minutes from its most recent meeting indicated that some Fed members favored more stimulus.

Stocks had a rough day, opening slightly lower, only to sink sharply following a weak consumer confidence report. But the knee jerk reaction was short lived, and stocks bounced back into positive territory before settling into a malaise for much of the day.

All indices closed the day in positive territory, but still remained down for the year. The Dow Jones industrial average moved up 20 points, or 0.2%, to 11,559.95.

Financial stocks remained under pressure, with Bank of America and JPMorgan Chase down between 1% to 3.5%.

The S&P 500 rose 3 points, or 0.2% to 1212.92; while the Nasdaq added 14 points, or 0.6% to 2576.11. Research in Motion, Baidu, and Netflix were among the biggest winners on the tech-heavy index.

Fed debated QE3 at August meeting

Federal Reserve policymakers debated the possibility of additional stimulus to jumpstart a stumbling U.S. economy at their most recent meeting on Aug. 9.

Among the options that had support of some members was a controversial third round of purchases of U.S. Treasuries, known as quantitative easing - or QE3 for short - according to the minutes of that meeting released Tuesday.

The Fed said some members argued that such purchases would drive down interest rates further and was the proper response to the growing signs of economic weakness. At least three members argued for immediately pumping more money into the economy.

Bank of America still not out of the woods

Even with Warren Buffett in its corner, Bank of America's fight to get past the mortgage bust is far from over.

Days after receiving $5 billion vote of confidence form the legendary investor, the list of opponents to BofA's proposed $8.5 billion settlement with investors in mortgage-backed bonds continues to grow.

On Monday, the Federal Deposit Insurance Corporation filed an objection to the settlement, saying it does not have enough information to evaluate the agreement, according to federal court documents.

The settlement, announced in June, has yet to be approved by the courts. It stems from troubled real estate loans made by Countrywide Financial, which BofA acquired in 2008. The money would go to a group of 22 investors, including BlackRock, the Federal Reserve Bank of New York and Pimco, which bought bonds backed by the home loans.

– CNNMoney.com's Maureen Farrell, Chris Isidore and Ben Rooney contributed to this report.

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Filed under: Business • Economy
soundoff (7 Responses)
  1. Hammy

    August 30, 2011 at 8:54 pm | Report abuse | Reply
  2. drap

    Im a simple man,yes..no.. meat and potatos,horrible investor! But after reading and watching first post..I'm going to Dennys for moons over my Hammys for breakfast... .

    August 30, 2011 at 9:41 pm | Report abuse | Reply
  3. Stockmarket Indicator

    Putcha right foot in
    Take ya right foot out
    Putcha left foot in
    Take ya left foot out
    Do da hokey pokey
    And turn ya self around
    That's what is all about...

    August 30, 2011 at 9:44 pm | Report abuse | Reply
  4. Jazzzzzzzz

    Oh, goody goody gum drops, we get the *change* left over from the big fat liars putting their paws into the cookie jar, just so they don't feel too bad!!!!!!!!!
    @ Stockmarket Indicatior ... LMAO

    August 30, 2011 at 10:31 pm | Report abuse | Reply
  5. :-)

    To preserve our independence ,we must not let our rulers load us with perpetual dept . We must make our election between economy and liberty , or profusion and servitude . I place economy among the first and most,important of republican virtues , and public dept as the greatest of the dangers to be feared . Thomas Jefferson

    August 31, 2011 at 3:09 am | Report abuse | Reply
    • Mmmmm

      so much like your stockmarket and republicans counterparts, it was only Jefferson who didn't play twister.

      August 31, 2011 at 7:23 am | Report abuse |
  6. jyattq

    Æ

    August 31, 2011 at 8:07 pm | Report abuse | Reply

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