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Market Commentary - Tue, Jul 22 - 9:59 AM ET

Treasury Secretary Henry Paulson spoke this morning on the U.S. economy and the financial markets, saying the U.S. is "on the right path to resolving financial and housing market turmoil." Paulson asked for patience as "working through the current turmoil will take additional time." During his speech, Paulson pushed for Congress to pass his proposal to provide further financial support for mortgage giants Fannie Mae and Freddie Mac.

Just when you thought it was ok to go back in the water, another shark appears. Wachovia Corp. reported a record quarterly loss of $8.9 billion, slashed the dividend by 87% and announced 6,350 job cuts. The stock fell as much as 12% in early New York trading. The second-quarter loss of $4.20 a share compared with net income of $2.3 billion, or $1.23, a year earlier, the Charlotte, North Carolina-based company said today in a statement. The loss included a $6.1 billion charge tied to declining asset values.

The hits keep on coming for the equity markets as IPod maker Apple Inc. reported a softer-than-forecast fiscal fourth quarter earnings outlook despite a robust second quarter earnings release. American Express said that second-quarter earnings dropped 38% and that the company said it won't meet earnings targets until the economy improves. Shares of the two companies are considerably lower in early trading.

Philadelphia Fed President Charles Plosser was speaking in King of Prussia, Pennsylvania this morning and stated that rising inflation could force the Fed to raise rates "sooner rather than later." "To keep inflation expectations anchored means that monetary policymakers will have to back up their words with actions," Plosser told a gathering of regional businesses.

Brought to you, courtesy of The Mortgage Market Guide.

The market commentary material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without error.

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