Countrywide Soars on Deal Rumor

Just a day after its stock fell dramatically on credit concerns, Countrywide Financial Corp.'s share price rose 51% Thursday on rumors of a deal with Bank of America. Countrywide's common stock closed at $7.75 on Jan. 10, up $2.63 on the day. The stock had been mired near the low end of its 52-week range ($4.43 to $45.26) on fears that liquidity problems and credit costs could push the firm toward bankruptcy. Countrywide's recovery on Thursday helped boost other mortgage-related stocks as well. IndyMac Bancorp saw its share price rise 23%, and Washington Mutual's shares were up 15% on the day.