US mkts rally as oil plunges more than $5

CNBC's Margaret Brennan - Stocks rallied late in the trading day with crude oil dropping for the second straight session and financial stocks rebounding. The Dow gained 152 points and the Nasdaq was higher by 51 points. 

Crude oil prices dropped lower by more than USD 5/bbl and that took fuel out of energy stocks like Exxon Mobil and Cheveron whose shares dropped more than 1%.

Financial stocks rebounded with Bank of America, which was the strongest gainer in the Dow, it was up 9%.

Mortgage firms Fannie Mae and Freddie Mac, which got slammed on Monday regained that lost ground on Tuesday as nations top regulator says the Federally backed mortgage funds will not need USD 75 billion in extra capital, that rumour had caused substantial concern on Monday session. Fannie and Freddie gained on Tuesday.
 
Wall Street action

Dow gains 152 points; Nasdaq up 51 pts
Crude dropped $5 to $136/bbl levels
Exxon Mobil, Chevron drop more than 1%
Financial stocks gained; Bank of America up 9%
Fannie Mae & Freddie Mac up after yesterday's loss
Bernanke says Fed may extend emergency loan programme for invst banks through 2009