Associated Press
Friday, March 14, 2008

NEW YORK, March 13 -- A fractious Wall Street rebounded from an early plunge to finish moderately higher Thursday, after Standard & Poor's predicted financial companies are nearing the end of the massive asset write-downs that have devastated stock and credit markets.

The Dow Jones industrial average finished up 35.50, or 0.29 percent, at 12,145.74, after falling more than 220 points early in the session and then popping up more than 100. The S&P 500-stock index rose 6.71, or 0.51 percent, to 1315.48, and the Nasdaq composite index rose 19.74, or 0.88 percent, to 2263.61.

Standard & Poor's Ratings Services said that it estimates write-downs of subprime asset-backed securities could reach $285 billion globally, up from its previous projection of $265 billion, but added that "the end of write-downs is now in sight for large financial institutions."

The government reported Thursday an unexpected dip in retail sales, and a research firm said nearly 60 percent more U.S. homes faced foreclosure in February than in the same month last year.

As investors contend with tight credit markets, they also face weakness in the dollar and soaring commodities prices.

The Commerce Department reported that retail sales fell 0.6 percent last month. Analysts had predicted an increase of 0.2 percent. Friday, the government releases data on consumer prices.

The Labor Department said the number of workers seeking unemployment benefits was unchanged last week. A government report released last week said employers cut payrolls by 63,000 in February, the second consecutive month of losses, and sent a wave of unease across Wall Street.

Goldman Sachs fell $2.43, to $165.44, after a Lehman Brothers analyst lowered his first-quarter profit estimate because of higher losses in the company's investment portfolio.

Target lost 53 cents, to $50.56. The firm is in talks to sell part of its credit card receivables business and plans to use some of the proceeds for a stock buyback.

Take-Two Interactive Software rose 73 cents, to $25.64, after Electronic Arts continued its bidding for the company.

Electronic Arts rose 3 cents, to $47.26.