U.S. stocks turn mostly up on oil's drop, mixed earnings

Date: Tue, 22 Jul 2008 12:03:31 -0400
U.S. stocks turn mostly up on oil's drop, mixed earnings

U.S. stocks scale back early losses Tuesday as the price of crude dips
more than $4 a barrel, countering earnings results and guidance from
American Express Co., Apple Inc. and Wachovia Corp. that intensified
worries about the economy.

Apple shares hit on weak forecast despite strong earnings

Apple Inc. shares tumble more than 8% after the consumer electronics
maker issues a weak fourth-quarter profit forecast, taking the shine off
a 31% jump in third-quarter earnings.

Wachovia swings to loss on writedown, cuts div

Wachovia Corp. took $6.1 billion of write-downs for bad investments
related to the mortgage and credit crises, and increased its write-off
and loan loss provisions, swinging the company to a loss for the second
quarter and prompting its second dividend cut this year.

AmEx falls as economy chokes growth

Shares of credit-card giant American Express shed as much as 12%, in
reaction to second-quarter results underscoring the fragile state of the
U.S. economy.

U.S. plan for GSEs has $25 billion price tag: CBO

A proposed plan by the Bush administration to backstop struggling
mortgage-finance companies Fannie Mae and Freddie Mac will cost $25
billion over fiscal years 2009 and 2010, the Congressional Budget Office
estimates.