MarketWatch: Monday's bulls need bailout

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U.S. stocks lose steam as Fed bailout reconsidered
GM shares resume retreat; Anheuser-Busch, Yahoo in M&A focus
By Kate Gibson, MarketWatch


NEW YORK (MarketWatch) -- U.S. stocks on Monday mostly failed to hold early gains as uncertainty over the government's rescue plan for mortgage-finance giants Fannie Mae and Freddie Mac offset cheer from InBev NV's $52 billion deal for Anheuser-Busch Cos.

"Reality is setting in. The news over the weekend regarding Fannie Mae and Freddie Mac was good -- but also bad in it is confirming what the market feared all along," said Peter Cardillo, chief market at Avalon Partners.

Energy trading got largely overshadowed for a change. Crude oil gained on the New York Mercantile Exchange, with futures for August delivery up 52 cents at $145.60 a barrel.

After generating double-digit percentage increases early on, shares of Fannie Mae and Freddie Mac pared their gains, with the former ahead 7.9% and the latter up 5.9%. The market valuations of both companies have declined steeply in recent sessions as investors worried about the viability of the government-sponsored companies. See full story.

Up more than 100 points early on, the Dow Jones Industrial Average was more recently up 34.22 points at 11,133.76.

Of the Dow's 30 components, 21 were on the rise, with the gains led by the likes of Alcoa Inc., up 1.5%, and Coca-Cola Co., up 1.4%. ......(more)

The complete piece is at: http://www.marketwatch.com/news/story/us-stocks-pare-early-gains/story.aspx?guid=%7B2EF4E9F5%2D4E30%2D4150%2DA3C2%2D61594FF5E777%7D