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Wall Street Finishes Flat As Stocks Fail To Rally On Relief Efforts
February 18, 2009 4:49 p.m. EST
Mitchell Jaworski - AHN Reporter
New York, NY (AHN) - President Obama's parade of relief plans continued on Wednesday, but markets failed to embrace the effort as all three major indices traded sideways majority of the session to finish relatively unchanged.
In Arizona today, Obama unveiled his $75 billion mortgage relief plan that aims to keep 9 million Americans from losing their home to foreclosure. The news comes just one day after Obama signed the $787 billion stimulus plan into law.
The Dow Jones failed to show conviction to either the buy or sell side and finished Wednesday with a 3 point gain. 18 of 30 Dow components finished the session lower.
Wal-Mart outperformed the other Dow components for a second straight day, rising 3.7 percent.
The S&P 500 was even less volatile and finished the session flat at 788. Just two of 10 major economic sectors finished the session higher.
Tech did not do much either with the Nasdaq Composite settling down just 2 points. Research in Motion weighed on the tech sector, down 5.4 percent, as share continue to sell off from yesterday's option back-dating news.
Crude oil sold off again as weak economic news continues to weigh on the commodity. Oil closed at $34.26, down 61 cents a barrel.
On the economic front, The Commerce Department said January housing starts fell to an annual rate of 466,000, which marks a record low and is short of the 529,000 economists had expected.
Industrial production fell 1.8 percent in January as manufacturers continue to slow output and idle factories. The result was a bit worse than the 1.6 percent decline economists expected.
In corporate news, General Electric's CEO Jeff Immelt has forgone his 2008 bonus, which would have paid $11.7 million, due to the company's poor earnings results and depressed stock price.
Several Goldman Sachs partners received margin calls from their own firm as investments fell below federal equity requirements, showing the economic crisis is even affecting those at top.
As for earnings, Deere and Goodyear Tire both posted fourth quarter results that were well short of analyst estimates. Goodyear also said it will cut 5,000 jobs.
Thursday's market will see the release of the January Producer Price Index (PPI) and initial jobless claims for the week ended Feb. 14.
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