A morning that started as a market down-spiral quickly trimmed losses as news that the government plans to subsidize troubled homeowners mortgage payments was released.  The Dow Jones Industrial Average slipped -0.09% to a close of 7,932.76 while the Nasdaq and S&P gained 0.73% and 0.17% respectively moving to levels of 1,541.71 and 835.19.  Crude oil benefited during trading today climbing $0.61 to $34.59 while gold lost -$7.1o to close at $941.80.  Halting a six month decline, United States retailers unexpectedly reported a 1% percent gain in purchases, which reflected higher gasoline prices leading to more spending on clothing and food.  The Labor Department also reported that 4.8 million people are currently collecting unemployment insurance.

Treasuries headed for their first weekly gain in almost a month on speculation President Barack Obama’s plans to counter the recession will be insufficient.  The difference between rates on 10-year notes and Treasury Inflation Protected Securities, or TIPS, which reflects the outlook among traders for consumer prices, narrowed to 1.17% percentage points from 1.37% percentage points at the start of the week.

Costco Wholesale Corporation (COST: 44.32, +0.78 (+1.79%)) released the following statement in connection with the announcement today by the United States Attorney’s Office in Seattle that it has concluded its investigation of the company’s stock option practices, Costco Wholesale’s President and Chief Executive Officer Jim Sinegal stated: “In the Fall of 2006 we voluntarily brought to the attention of regulators issues concerning our option grants and took an accounting charge to correct for errors. We have cooperated with the US Attorney’s investigation and have notified them of Costco’s commitment to enhancing its compliance program as posted on their web site.”

Rio Tinto Group (RIO: 15.75, +0.03 (+0.19%)), the world’s third-largest mining company, is currently experiencing a weak position after selling its assets to Aluminum Corp. of China at the bottom of the commodity cycle.  Chinalco, as the China owned company is commonly called, agreed to invest $19.5 billion in debt pressured Rio after metal prices plunged -57% percent from a July high, ending a six-year commodity boom and greatly slashing mine values.  Rio, which rejected BHP Billiton Ltd.’s $66 billion hostile bid last year, will cut its $38.9 billion of debt incurred after buying Alcan Inc. in 2007.

- Jason Gibbons

Disclosure: None