Updated from 1 p.m. EDT
Stocks on Wall Street turned mixed Friday as traders continued to weigh the possibility of a financial-sector bailout and the implications of
Dow Jones Industrial Average
, down more than 100 points at the outset, went positive and was lately higher by 76 points at 11,098. The
was losing 2 points at 1208, and the
was the weakest performer, falling 13 points to 2174.
Somewhat encouraging for the market were comments from President Bush, who said that elected officials would find common ground and arrange a rescue for the financial system. "We will rise to the occasion, where Republicans and Democrats will come together and pass a substantial rescue plan," he said.
On Thursday, the three major indices rallied sharply on the expectation that Congress would quickly pass Treasury Secretary Henry Paulson's $700 billion bailout plan to purchase troubled assets from the financials.
After the session ended, however, discussions on Capitol Hill about the
hit a rough patch.
The Wall Street Journal
reported that an alternative proposal by Republicans tabled efforts to pass the Paulson plan.
The news of the potential breakdown coincided with word that federal regulators had seized
and arranged the sale of the assets, deposits and some liabilities of the failed bank to JPMorgan Chase.
The Office of Thrift Supervision and the Federal Deposit Insurance Corporation facilitated the deal. Shares of JPMorgan, up more than 7%, were leading the Dow, while WaMu was trading down 90% at 16 cents.
Looking at corporate earnings,
Research In Motion
reported second-quarter profit that was just short of expectations and offered tepid third-quarter guidance. The forecast sent its shares sharply lower in after-market trading.
Ahead of the final session of the week,
said its quarterly earnings rose, while
posted a loss.
Turning to economic data, the Bureau of Economic Analysis released its final reading on second-quarter gross domestic product, downwardly revising the figure to show growth of 2.8% from April to June. The preliminary number had been 3.3%.
said it has extended the agreements already in place with other central banks to further boost the liquidity of the money markets. Policymakers said they have authorized a $10 billion increase in the Fed's temporary swap facility with the European Central Bank and a $3 billion boost in its line with the Swiss National Bank. In total, the changes add $13 billion to the existing $277 billion in temporary reciprocal currency arrangements with other central banks.
Over in commodities, the price of crude oil was down $2.07 to $105.95 a barrel. Gold was rising $11.20 to $893.20 an ounce.
Longer-dated U.S. Treasury securities were rising in price. The 10-year was up 18/32, yielding 3.79%, and the 30-year was adding 24/32 to yield 4.36%. The dollar was lower vs. the yen and pound but gaining on the euro.
Overseas exchanges were broadly weaker. The FTSE in London and the DAX in Frankfurt were edging downward, and the Nikkei in Japan and the Hang Seng in Hong Kong finished with losses.
This article was written by a staff member of TheStreet.com.