Markets rose substantially at the end of the day, in part led by the strong earnings reports from 5 of 30 DJIA components this morning alone. This was despite the discussions of the risks of the US's Triple-A rating, another drop in home prices, and despite weekly jobless claims heading higher.

Here were today's unofficial closing bell levels:

Dow 10,081.31 +131.95 (1.33%)
S&P 500 1,092.91 +11.51 (1.06%)
Nasdaq 2,165.29 +14.56 (0.68%)

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Despite Moody's claiming the US's Triple-A rating was stable, the markets sold off today. The markets tried to hold up but the afternoon session was marked by selling as bond yields rose on the long-end of the curve. The 10-Year Treasury yield was up 20 basis points to 3.697% and the 30-Year Treasury yield was up 16 basis points to 4.60%.

Here were the unofficial closing bell levels:

Dow 8,300.98 -172.51 (-2.04%)
S&P 500 893.13 -17.20 (-1.89%)
Nasdaq 1,731.08 -19.35 (-1.11%)

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On Friday, Standard & Poor's lowered its corporate credit rating for ConAgra Foods (NYSE: CAG). The ratings firm lowered CAG's rating to "BBB" from "BBB+" and removed all ratings on the company from CreditWatch with negative implications, attributing the move to weak credit and high operating costs.

S&P noted that higher operating costs have hurt margins, particularly in CAG's consumer foods segment. This part of CAG's business brought in 64% of the firm's fiscal 2008 revenue.

S&P believes that CAG will "modestly improve" credit measures from current levels during the next two years. S&P could revise CAG's outlook to negative if the firm becomes more aggressive in its financial policy. Currently, CAG's outlook is stable.

We've become used to it. Almost everyday we reach levels not seen in decades. Whether it's employment statistics, market data or downgrading of the outlook on General Electric Co. (NYSE: GE) -- it is a first in 52 years.

On Thursday, two days after GE had provided outlook for 2008 and 2009, S&P credit rating agency lowered the outlook for GE and GE Capital from stable to negative. While it affirmed their Triple-A ratings, it also said that there is a one-in-three chance they could lose them because of concerns about cash flow and funding for GE Capital as global conditions worsen. Moody's credit rating agency kept its outlook on GE as stable.

GE had already added $5 billion in funds to the finance unit to help meet the new leverage ratio this month. S&P is concerned it may need to add more. Does GE have the cash? Well, GE isn't planning to cut the $1.24 annual dividend, which is estimated to cost around $13 billion. As it stands now, with the current new outlook the dividend would consume most of GE's free cash flow next year. So while execs would like to keep the dividend, there is more cash to play with. Somewhat worrisome, though, is the fact that GE will no longer provide quarterly guidance.

A couple days ago on our sister site WalletPop, forensic accountant Tracy Coenen asked readers for tips on how to help her lower her credit score. Her reasoning? Part of the White House's bailout plan involves freezing the interest rate on adjustable rate mortgages for five years, but only for borrowers who meet certain criteria. One of those criteria is having a FICO score below 660.

Apparently other people are thinking like Tracy. According to MarketWatch:


Should we fault people for trying to game the system? Heck no! That's what systems are for. If multi-billion dollar companies can work out ways to avoid paying any taxes at all, why shouldn't you lower your credit score to save some money on your mortgage?

The fact that the bailout appears so easy to manipulate is really indicative of how stupid it is. Does it make sense to offer a low interest rate only to people with a poor record of paying back loans? Isn't that the exact opposite of the entire point of credit ratings?

Zac Bissonnette is an associate editor with WalletPop, AOL Money & Finance's new personal finance blogsite that covers the financial issues that are important to you in a fun, interesting way.

The Motley Fool's Dan Caplinger takes a look at the issue of credit piggybacking, and what the industry is looking to do about it. Basically, someone with a low credit score can pay someone with a better score to add them to their accounts as an authorized user, without actually using the account. There are companies that offer this "service" and, needless to say, the credit card companies aren't happy about it because it distorts credit. It allows completely irresponsible people to buy good FICO scores. It's no different than buying SAT scores from someone else to get into a good college.

While it's hard to have too much sympathy for the credit card companies, they have a right to be upset here. Fair Isaac (NYSE: FIC) has simply elected to stop considering authorized users when calculating credit scores, which seems like a logical step.

A crackdown on piggybacking could also lead to the demise of one of the easiest ways for parents to build credit histories for their children: adding them as authorized users. I'd like to see this end as well because the principle is the same. People should not get credit for stuff they had nothing to do with. It also reeks of nepotism, and seems unfair to kids whose parents don't have good credit. Do we really need to give rich kids another advantage? By piggybacking off their parents credit, kids with responsible parents can have great credit scores without ever having a credit card. Kids with less fortunate parents don't have that opportunity, and that's wrong.

There's no intelligent reason that piggybacking on credit should be allowed, and it will probably be stopped soon.