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Wall Street Pares Losses On Home Loan News
 
February 12, 2009 5:02 p.m. EST
 
 
Mitchell Jaworski - AHN Reporter
 
New York, NY (AHN) - U.S. markets were trading more than 2 percent lower most of Thursday before staging a late rally back to even. The move was sparked by a report the Obama Administration may partially subsidize outstanding mortgages.
According to comments on CNBC, the Obama administration is seeking to implement a plan that would reduce mortgage payments to a level homeowners can afford with the bank and the government splitting the difference from the original payment.
The Dow Jones Industrial average rallied 240 points in the last hour of trade to close with a 7 point or 0.1 percent loss. 20 of 30 Dow components finished Thursday with a loss.
The industrial components were the weakest Dow players with 3M and Alcoa both shedding more than 2.5 percent on the session.
The S&P 500 rallied from a 25 point deficit to finish with a 1 point gain. The move was led by the financial sector, which finished 1.3 percent higher after erasing a 7 percent decline.
Tech staged the biggest rally as the Nasdaq Composite finished the session 11 points higher or 0.7 percent. Big-cap tech led the way as the Nasdaq 100 added 1.28 percent on Thursday.
Crude oil sold off again, down $1.96 a barrel to settle at $33.98 on the New York Mercantile Exchange.
On the economic front, the Labor Department reported new jobless claims fell by 8,000 to 623,000 for the week ended Feb.7. However, economists expected a drop to 610,000.
An advanced reading of January retail sales showed a 1 percent increase, much better than the 0.8 percent decline economists had predicted.
In corporate news, Coca-Cola posted fourth quarter earnings of 64 cents a share, topping estimates of 61 cents a share. However, revenue of $7.13 billion did come up a bit short of expectations.
Health insurance giant Aetna also topped fourth quarter earnings; posting 96 cents a share compared to expectations for 94 cents a share.
Friday's market will see the release of the February preliminary reading of Michigan Consumer Sentiment. 
  
    
      
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