Market Round-Up (FRE, UAUA, CAL, NWS, TWX)

Time to lock in mortgage rates: Government-sponsored mortgage lender Freddie Mac (NYSE: FRE) says it’s time to lock in mortgage rates. The 30-year fixed rates are likely to exceed 6% by the end of 2010 after the Fed stops buying mortgage-backed securities. In the absence of the Fed, private buyers are expected to return to the market and keep rates in check. According to FRE, private buyers would demand a higher rate of return, forcing lenders to pass on the rates to consumers.

Airlines suffering big time: With the shares of airline companies, such as UAL Corp (NASDAQ: UAUA) and Continental Airlines (NYSE: CAL), having a dream run since mid year, it’s time the run-up is reined in. The security measures that have been put in place to avoid any further threats to the nation are hurting the revenues of airlines big time this holiday season.

Christmas retail sales in 2009 much better than in 2008: Based on data from MasterCard's SpendingPulse, last-minute spending spree by shoppers, coupled with an extra day between Thanksgiving and Christmas, has boosted total retail sales by 3.6% this season. As expected, growth in online sales was relatively strong at 15.5%.

Box office records shattered: New box office receipt records were created, with the three-day Christmas weekend grossing approximately $278 million. Driven by robust sales at large-screen Imax locations, the science-fiction epic Avatar made by News Corp (NYSE: NWS) pulled $75 million in sales. Meanwhile, in its Christmas Day debut, Sherlock Holmes, produced by Time Warner (NYSE: TWX), raked in $24.9 million, creating a record.