Rally Goes On, Modestly

Oil prices continued to fall, spurring modest gains for the markets today, but Freddie Mac’s enormous second-quarter loss signified that the housing and credit crises are not over yet, the Wall Street Journal reports. The Dow rose 40.30 to close at 11,656.07. The Nasdaq gained 28.54, ending at 2,378.37, and the S&P 500 gained 4.30 to 1,289.18.

Tech giant Cisco Systems rose 6.2% after strong quarterly results beat forecasts; AIG fell after Société Generale posted a sell rating. Crude oil traded down 59 cents to 118.58. "The fact that we have lower oil and a strong dollar is propelling stocks and extending the post-Fed rally," one analyst said, referencing yesterday’s 331-point surge. (More Dow Jones stories.)