U.S. futures pare gains after Freddie Mac posts $2B loss, says may cut dividend |
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Tue, 20 Nov 2007 13:48
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NEW YORK (Thomson Financial) - U.S. stock futures rallied ahead of Tuesday's open, but pared gains after Freddie Mac reported a $2 billion quarterly loss and said it might cut his dividend in half.S&P 500 futures were up 5.80 points at 1,443.30 and Nasdaq 100 futures climbed 17.50 points to 2,045.50.Just prior to the release of Freddie Mac's results, S&P 500 futures were trading around 1,449.30 and Nasdaq 100 futures were around 2,051.25.Freddie Mac said its loss for the latest quarter included a $1.2 billion provision for credit losses. The government-sponsored mortgage services company said it hired Goldman Sachs and Lehman Bros. to help it consider ways to raise capital in the near term. The company said if the dividend cut wasn't enough to meet mandatory capital surplus targets, it would consider additional actions, including limiting growth and reducing the size of its portfolio.Tomi Kilgoretk1COPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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$2 billion Freddie Mac loss 