US markets rally; Dow Jones up 90-point

CNBC’s Margaret Brennan - The US markets rallied despite the signs of inflation and negative news about the housing market. The Dow Jones industrial average gains of 90-point and Nasdaq 21-point. News of consumer prices rose 0.4% in January, its faster than expected and the housing stocks fell to a new 16-year low or may signal more rate cuts ahead, at least the financial stocks buyers are betting shares of Bear Stearns, gained 4%, Morgan Stanley up 5%.

Also helping the Dow is crude oil prices, which hit a new record of USD 100.74/bbl. Shares of energy giants Exxon Mobil and Chevron rose more than 1%. Retailers also benefited with S&P retail index, which was up more than 2%; While Credit Suisse downgraded the telecom sector, Verizon shares sunk 10 cents and AT&T closed up by 4% on the day. 

Wall Street Action                   

• Mkts rally despite signs of inflation & negative news about housing mkt
• Dow gains 90 pts, Nasdaq up 21 pts
• Jan Consumer prices up 0.4%, higher than expected
• Housing start falls to 16-year lows
• Crude prices hit new record of $ 101.32/bbl
• S&P retail index up 2%  
• AT&T, Verizon Comm downgraded by Credit Suisse