Today's Headlines

Bloomberg:
- US stocks rose for a fourth day, poised for the best week since February, after companies from Citigroup(C) to Google Inc.(GOOG) to Caterpillar(CAT) reported results that exceeded analysts’ estimates.
- The US dollar rose the most against the euro in more than two weeks after Citigroup’s first-quarter results fueled speculation that financial firms will weather credit market losses.
- The debt of Fannie Mae and Freddie Mac, the largest US mortgage-finance companies, rallied to the lowest yields over government notes in more than two months amid buying by foreign central banks and other overseas investors. The difference between yields on Fannie Mae’s 5-year debt and benchmark 5-year US Treasuries fell today to about 68 basis points, the lowest since Feb. 4 and down from 82 basis points two days ago.
- The cost to protect US corporate bonds from default fell after Citigroup Inc.(C) posted a loss that was smaller than analysts’ most pessimistic estimates, fueling optimism that the credit-market contraction may be easing. Credit-default swaps on the benchmark Markit CDX North America Investment Grade Index dropped 9.25 basis points to 100.25. Contracts on NY-based Citigroup fell 22 basis points to 95, the lowest in more than two months.
- Options traders who predicted Google Inc.(GOOG) would beat estimates are earning as much as 17,530 percent on their investments today, the most profitable bet among all US equity derivatives.
- Crude oil rebounded to a record $116.19 a barrel in NY after investment fund speculation increased on concern that a 5.2-magnitude earthquake in Illinois affected refinery operations.
- John McCain, the presumptive Republican presidential nominee, reported $405,409 in income late year and paid $118,660 in federal taxes, according to tax returns made public today. He gave $105,467 to charity.
- Caterpillar Inc.(CAT) said first-quarter profit rose 13%, sending the shares 8% higher.

Wall Street Journal:
- The Bank of England is considering accepting up to $59.7 billion in bank mortgages as collateral for government-securities loans, in a plan to bail out banks that could be announced within a week. The banks could use the money to raise cash, as part of a step to ease the credit freeze.
- Climate Change Data Not Reliable, Michaels Writes.

InvestmentNews:
- Activist hedge fund manager Phillip Goldstein has plans to create a non-profit organization to help the hedge fund industry challenge what he described as regulatory injustices. Mr. Goldstein, principal of Bulldog Investors in Saddle Brook, NJ, led the fight two years ago to overturn a rule requiring hedge fund managers to register as investment advisers by suing the SEC.

NY Magazine:
- Robert Reich, who served as former President Bill Clinton’s secretary of labor, will endorse Illinois Senator Barack Obama for the Democratic presidential nomination today instead of Senator Hillary Rodham Clinton, his former boss’s wife.

NY Post:
- On the heels of billionaire investor Wilbur Ross announcing on Wednesday that he was raising some $4 billion to gobble up hobbled banks, one prominent Wall St. analyst is aiming to do the same thing. Outspoken bank analyst Richard Bove at Punk Ziegel, who scores regular face time on CNBC and Fox Business Network, wants to put his money where his mouth is. The 67-year old veteran analyst is attempting to raise a series of funds to purchase regional banks and thrifts that could top $15 billion over the next few years.

Forbes.com:
- Banks See A Bright Side In Dour Numbers.

AP:
- Al-Qaeda’s No. 2, Ayman al-Zawahiri, said the US occupation of Iraq has brought only “failure and defeat,” citing an audio recording posted on an Islamic militant Web site.