US mkts rally as credit rating affirmed for Ambac, MBIA

CNBC’s Margaret Brennan - US market started the week with a rally thanks to S&P maintaining its top rating under nation’s two bond insurers MBIA and Ambac. That gave a boost to the Dow, which rallied 189 points and the Nasdaq gained 24 points.
 
Good bond insurer news relieved pressure on financial stocks following a report from Goldman Sachs, which cut estimates from Morgan Stanley, Merrill Lynch, Lehman Brothers and other investment banks, signing expected rate downs between USD 1-12 billion for bad real estate amounts.
 
Credit Card Company Visa may raise a record USD 17 billion in its Initial Public Offering (IPO). The world’s largest credit card company plans an IPO in the range of USD 37-42 a share.
 
Home improvement retailer Lowes saw a 33% drop in fourth quarter net income too, to the problems in US housing market.    

Wall Street Action

• US stks gain after Ambac & MBIA's AAA rating were affirmed by S&P
• Dow ends up 189 pts while Nasdaq gains 24 pts
• Good news for bond insurers pushed financial stks up
• Goldman Sachs cuts estimates for Morgan Stanley, Merrill Lynch, Lehman Bros
• Visa may raise $ 17 bn via IPO, price band of $ 37-$ 42/sh
• Lowes Q4 net income drops 33% due to U.S. housing mkt woes