Last Updated: February 12th, 2009: 4:50 PM ET---The major US equity indices traded with substantial losses for most of the session, but staged a rally during the last hour of the session to close mixed on word of a new plan to fix the housing market from the Obama administration. The Dow closed off slightly, down 0.1% to 7933, the S&P 500 closed 0.2% higher to 835, meanwhile, the Nasdaq outperformed and closed 0.7% higher to 1,542. Late in the session a Reuters report surfaced that the Obama administration was working on a plan that would involve subsidizing mortgage payments for homeowners that were falling behind on their payments in an attempt to stabilize home prices and slow foreclosures. The plan could use Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) to help.

In earnings news, Coca-Cola (NYSE:KO) reported fourth quarter earnings of $0.64 cents per share, ex-items, topping analyst estimates of $0.61 per share. Marriott International (NYSE:MAR) reported fourth quarter earnings of $0.34 per share, ex-items, missing analyst estimates for earnings of $0.39 per share. Marriott says it sees first quarter of 2009 earnings from continuing operations to be in the range of $0.13 to $0.15, vs. estimates of $0.21 for the period. The company also said it sees earnings per share for fiscal 2009 to be in the range of $0.86 and $1.04 per share, vs. consensus estimates of $1.12 per share. Aetna (NYSE:AET) reported fourth quarter earnings from operations of $0.96 per share, beating analyst estimates for earnings of $0.94 per share. The company said for 2009, it expects a profit of $3.85 to $3.95 per share, vs. consensus estimates of $3.87 per share. Waste Management (NYSE:WMI) reported fourth quarter earnings of $0.49 per share, ex-items, ahead of analyst estimates of $0.48 per share. Stifel Financial (NYSE:SF) reported fourth quarter earnings of $0.72 per share, ex-items, beating analyst estimates for earnings of $0.56 per share. Strayer Education (NASDAQ:STRA) reported fourth quarter earnings from of $1.71 per share, beating analyst estimates for earnings of $1.70 per share.

In economic news, the Labor Department reported its weekly reading on jobless claims Thursday morning showing an 8,000 decline to 623,000, from a revised 631,000 reading the previous week. Economists, on average, were anticipating a reading of 610,000. The reading puts the total number of Americans receiving benefits at 4.81 million. At the same time Thursday morning the Commerce Department released its January reading on retail sales showing a surprising rise of 1%, from a 3% decline in December and versus expectations of a 0.8% decline. Excluding autos, sales rose 0.9% vs. a revised 3.2% decline in December. However, the better-than-expected was met with skepticism by most as many attributed the rebound to 50% and 60% clearance sales, dismissing it as either a one-time occurrence that wouldn't continue or a reading that would be revised lower. Later in the morning, the Commerce Department released a separate report on December business inventories showing a larger-than-expected decline of 1.3% versus estimates of a 0.8% decline and down from a revised 1.1% decline the previous month. The decline, which marks the largest drop since 2001, reflects companies reaction to rapidly deteriorating consumer spending and slumping sales which underlies the deepening recession.

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