The stock market was optimistic today after hearing the speeches of Ben Bernanke and President Bush. Market participants felt like the two speeches both indicated that all policymakers were willing to take all the steps necessary to avoid severe 
economic problems from the current credit market crisis. The Dow finished the day with a gain of 119 points, while the Nasdaq and S&P 500 closed up by 31 and 16 respectively.
Financial sector stocks that have been under significant pressure were among the leaders today. E*Trade Financial Corporation (NASDAQ:ETFC) finished the day up by 5.48% as the speeches eased investors minds, at least for today. Morgan Stanley Corporation (NYSE:MS) gained 3.67% and Merrill Lynch and Company (NYSE:MER) rose 2.11% as the investment banking sector gained ground.
The housing sector also traded significantly higher on the day. KB Home (NYSE:KBH) gained 4.23%, and D.R. Horton Inc (NYSE:DHI) shares closed 3.78% higher. The sector was boosted by President Bush's remarks this morning of a propsal for government intervention to help the mortgage crisis.
The financial markets will be closed on Monday in observance of Labor Day. It is likely that beginning on Tuesday the markets will have an increase in volume and probably volatility as well as traders return from their vacations and get back to business.
It is notable to mention that stocks actually pared their gains in the last few minutes of the trading day today, after being considerably higher earlier in the day. The bears will certainly continue trying to push the market back down, and any further news of credit problems leaves the market vulnerable.
Have a great Labor Day and enjoy the long weekend!
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