Financial Stocks Lead New Rally

Financial stocks led a broad rally on Thursday, and some analysts attributed the gains in part to confidence stemming from recent moves to pump liquidity into the mortgage sector. All 15 mortgage-related stocks tracked by MortgageWire closed higher on Thursday, with six posting double-digit percentage gains. Washington Mutual's shares rose 19%, closing at $11.70. Franklin Bank Corp.'s shares were up 17%, closing at $3.09. Countrywide's shares rose 13%, closing at $5.78. Shares in Fannie Mae and Freddie Mac were up by 12% and 9%, respectively, capping a strong week for the two companies after their regulator eased capital requirements so the firms can finance a larger volume of home loans. Overall, the Dow Jones Industrial Average rose 262 points, or 2.16% on the day, and other major indices rose by similar percentages. Markets are closed on Friday, March 21, in observance of Good Friday.