NEW YORK (AP) -- The stock market has made a late-day comeback, hoping that homeowners will get more help with their mortgages.
A Reuters report that the government plans to subsidize troubled homeowners' mortgage payments helped the Dow Jones industrial average pare sharp losses Thursday afternoon and finish down less than 7 points. Two people briefed on the plan told The Associated Press it would lower mortgage rates for borrowers on the verge of foreclosure. They spoke on condition of anonymity because the details were not yet complete.
The idea of targeted help for homeowners impressed investors more than the government's $789 billion economic stimulus package and its revised plan to bail out problem banks.