IBD's Top 10 - Friday

1 With President Bush promising to aid homeowners and the Fed saying it's ready to act, the Nasdaq rose 1.2%, closing above its 50-day line for the first time in a month. The NYSE composite leapt 1.5%, the S&P 500 1.1% and the Dow 0.9%. NYSE volume rose, and Nasdaq trade fell -- both came in way below average. The 10-year T-note's yield rose 2 ticks to 4.53%.

Fed Chief: 'Will Act As Needed'

2 Fin'l market woes could further depress housing activity and hit consumer spending, Ben Bernanke said. The Fed doesn't want to bail out investors and lenders for bad decisions, he said, but stands ready to protect the economy. On Aug. 17, the Fed slashed the discount rate to try to restore confidence. Markets expect at least a quarter-point fed funds cut by Sept. 18.

Bush Proposes Homeowner Aid

3 The president will let the Federal Housing Administration guarantee loans for delinquent borrowers, letting them refinance at better rates. He'll also use predatory lending laws to jawbone lenders. He wants Congress to pass tax breaks. But he said, "It's not the government's job to bail out speculators." Democrats have called for more aggressive action.

Wages, Outlays Up; Inflation OK

4 Personal incomes rose 0.5% in July, the most since March, and spending grew 0.4%. Both were a little better than expected. But Aug. credit market woes have raised concerns about the economy. Core inflation held at 1.9% in July, within the Federal Reserve's comfort zone, giving the Fed more leeway to cut rates.

Factory Activity Beats Forecasts

5 The Chicago purchasers' index rose to 53.8 in Aug. from 53.4 in July, defying forecasts for a modest drop. Readings over 50 signal Midwest factory growth. Order growth rebounded, but the jobs index weakened. Meantime, new factory orders shot up 3.7% in July, also a little above views. June orders were revised upward to a 1% gain.

ITunes Cuts NBC In Pricing Feud

6 After being unable to reach a new pricing deal, Apple (NasdaqGS: - ) will pull the network's shows, which accounted for 40% of iTunes video downloads. Apple said NBC (NYSE: - ) wanted fees that would have forced iTunes to sell shows for $4.99 an episode vs. $1.99 now. NBC said Apple's strategy is "designed to drive sales of Apple devices at the expense" of content providers.

Sen. Warner Exiting; Craig Out?

7 John Warner, R-Va., a top GOP voice on defense who wants a troop pullout from Iraq to start by year-end, won't seek a 6th term in '08. GOP officials said Idaho Sen. Larry Craig will resign Sat. amid widespread calls from fellow Republicans to quit over a men's room sex sting. White House spokesman Tony Snow, battling cancer, who had said he'd resign, will leave Sept. 14.

Accredited Rejects Lower Bid

8 The subprime mortgage lender rejected Lone Star Funds' effort to slash its offer to $8.50 a share. The buyout firm agreed in June to buy Accredited Home Lenders (NasdaqGS: - ) for $15.10. But Lone Star backed off as mortgage conditions worsened. Accredited will continue a suit to force Lone Star to fulfill its initial deal. Accredited shares rose 43% to 9.05.

Petraeus: Iraq Buildup Working

9 President Bush's deployment of additional troops to Iraq has sharply reduced sectarian killings and roadside bombings and lowered al-Qaida's influence, Gen. David Petraeus told an Australian newspaper. The general, in a possible preview of his upcoming briefing to Congress, said religious killings have plunged 75% in a year and seizures of arms caches have doubled.

WTO To Probe China Subsidies

10 The World Trade Organization began an inquiry of China's tax policies that the U.S. and Mexico allege amount to illegal industry subsidies. China says its tax laws comply with WTO rules. Trade with China is a touchy issue. The U.S. is pressing Beijing for trade and currency changes while striving to avoid alienating a key trading partner.