Feb. 19--Obama housing plan fails to boost Wall Street

Investors took scant comfort Wednesday from the government's plans to revive the housing market and overall economy.

Wall Street ended with only modest changes after a steep sell-off Tuesday sent stock market indicators to their lowest levels since November.

"I think the general consensus is the Fed, the Treasury, the government just can't seem to get out ahead of this," said Harry Rady, CEO at Rady Asset Management in La Jolla, Calif., referring to the Federal Reserve and other agencies.

The Dow Jones industrial average edged up 3.03, or less than 0.1 percent, to 7,555.63.

Broader stock indicators slipped. The Standard & Poor's 500 index fell 0.75, or 0.1 percent, to 788.42, and the Nasdaq composite index fell 2.69, or 0.2 percent, to 1,467.97.

The Federal Reserve slashed its projections for the country's economic performance this year, predicting the economy will shrink this year. In its previous forecast, the Fed still held out the possibility of growth in 2009.

The government said construction of homes and apartments tumbled by 16.8 percent in January to a record low annual rate. Applications for building permits also dropped to a record low.

Also, production at the nation's factories, mines and utilities fell a greater-than-expected 1.8 percent last month.

-- FROM WIRE REPORTS

Chesapeake Energy seeks shale partners

Chesapeake Energy Corp. is

in talks with potential partners to help develop Barnett Shale and other U.S. properties, CEO Aubrey McClendon said Wednesday.

"There is a high degree of international energy company interest in gas shale in the U.S.," the natural gas producer's top executive said on a conference call with analysts and investors. "We have multiple ongoing conversations with multiple international energy companies, some of which involve the Barnett and some of which involve other plays."

Shale formations, which are more costly to develop than traditional wells, provide new sources for natural gas in states including Texas, where the Barnett is located. Oklahoma City-based Chesapeake explores for gas in Barnett, Haynesville Shale in Louisiana and Texas, and Marcellus Shale in the Northeast.

The company in July agreed to form a joint venture with Plains Exploration & Production Co. to help develop Haynesville. In November, Chesapeake agreed to join StatoilHydro ASA of Norway in its first venture outside of the U.S. to develop unconventional natural-gas assets in China, Ukraine and Romania.

Chesapeake on reported a fourth-quarter loss Tuesday of $860 million after writing down the value of properties because of tumbling energy prices.

-- FROM WIRE REPORTS

Ditch Witch furloughs workers for week

For the second time this year, Perry-based Ditch Witch has furloughed its hourly employees for a week to trim costs.

The company that makes underground construction equipment said the furloughs are in response to the economy. This week, Monday was observed as a holiday for President's Day, and employees not working the rest of the week will receive unemployment benefits, the company said in a news release.

Ditch Witch employs 1,200 people, with 896 hourly workers included in the temporary layoffs.

A shortened work schedule will continue into March, where half the hourly employees will work the first and third weeks and the other half will work second and fourth weeks, said Dave Lamerton, corporate services director at Ditch Witch.

"We have established this staggered work schedule, working with the Oklahoma Employment Security Commission, to ensure the demand of our product is met and keeping our valued employees working as many hours as business allows," he said.

-- DEBBIE BLOSSOM, The Oklahoman

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