IBT Staff Reporter

U.S. Stocks seesawed on Wednesday, closing in the green after forecasts of an economic recession drove investors into sectors seen as resistant to the looming economic contraction, such as health care and consumer companies.

Countrywide Financial Corp, the largest U.S. mortgage lender, said on Wednesday that foreclosures and late payments rose in December to the highest on record, sending its shares tumbling for a second day to their lowest in nearly 13 years. Shares fell 11.9 percent in afternoon trading.

The dollar gained versus the euro on Wednesday on lower economic indicators in Germany and comments by St. Louis Federal Reserve President William Poole that it is too soon to tell if housing woes will trigger an economic recession.

British music fans will pay less for downloads from Apple's online iTunes store after Apple Chief Executive Steve Jobs reached a deal with the European Commission.

President Bush, in the Mideast to push along a peace deal by the end of his presidency, gave orders to both sides on Wednesday. He told Israelis that illegal outposts in disputed land must go and told Palestinians that no part of their territories can be a safe haven for terrorists.

Blockbuster Inc Chief Executive James Keyes said on Wednesday he was comfortable the nation's leading DVD rental chain will meet financial targets of its debt agreements in the first quarter and beyond.

The stock market may be the deciding factor in whether the U.S. economy tips into a consumer-driven recession this year.

Led by Democrat Hillary Clinton and Republican John McCain, candidates fanned out across the country on Wednesday in a U.S. presidential race dramatically reshaped by their comeback wins in New Hampshire.

U.S. stocks were mixed on Wednesday after Goldman Sachs Group forecast a recession in 2008 erasing gains from health care and consumer companies. Investors bought defensive stocks including drug makers such as Merck & Co and Pfizer Inc and those of consumer staple companies such as Altria Group Inc parent of cigarette maker Philip Morris.

Oil climbed to nearly $97 a barrel on Wednesday as a larger-than-expected draw in U.S. crude stocks offset worries over a U.S. recession this year.

The dollar climbed on Wednesday following comments from a Federal Reserve official who said it would be a mistake to say a U.S. recession is at hand.

Gold surged to a record high just under $900 on Wednesday, powered by heavy investor buying and helped by firm oil and a strong debut for Shanghai gold futures, but it later slipped below previous day's closing level.

The number of calls to non-profits and mortgage counselors by people eager to avoid foreclosure on their homes is rising but solutions are not always simple.

Goldman Sachs Groups Inc. said on Wednesday the U.S. economy is likely to drop into recession this year leading the Federal Reserve to cut interest rates by 2.5 percent by the third quarter. The global investment bank said in a note to clients there is an 88 percent chance that the Federal Reserve will lower its target for overnight rates to 3.75 percent from 4.25 percent at its next policy meeting on January 30, as February fed funds futures rose 0.02 points to 96.19.

Microsoft will not launch a product that competes directly with Apple's iPhone, Chairman Bill Gates said in an interview with Germany's Frankfurter Allgemeine Zeitung. No, we won't do that. In the so-called smart phone business we will concentrate solely on software with our Windows Mobile program, Gates was quoted as saying in the interview published on Wednesday.

The toll that economic uncertainty has taken on U.S. consumer electronics retailers was made very clear on Tuesday by Circuit City CEO Phil Schoonover. I am not smiling, Schoonover said, when asked to reflect on his 2007 sales.

The United States Federal communications Commission confirmed that the deadline for the nationwide switch to digital television will still be next year. At the International Consumer Electronics Show in Las Vegas, Kevin Martin said Tuesday that the February 2009 deadline would be a hard deadline, and postponement would dis-incentivize the industry's transition.

Technology stocks plunged on Tuesday, with the tech heavy Nasdaq Composite index closed down for the eight straight session.

U.S. stocks nose-divided in the final hour of Tuesday trading on rising consumer debt, higher oil prices, and traders grew bearish on weak housing economic data.

Copper Futures climbed to their highest levels since mid-November on Tuesday, propelled by a rally in other industrial metals early in 2008.

US wheat futures ended mixed on Tuesday, following gains in crops such as corn and soybeans as late selling weighed on the markets and traders speculated a drop in the dollar will boost demand for U.S. exports.

U.S. stocks fell sharply on Tuesday amid various reports pointing to further weakening in the economy. A drop in home sales, reduced consumer spending at AT&T and rumors of a possible bankruptcy at leading mortgage lender Countrywide Financial contributed to a nearly 2 percent drop in the benchmark Dow Jones Industrial Average.

U.S. gold futures finished above $880 on Tuesday after climbing to a record high, fueled by surging oil prices, a weakening dollar and tensions between the United States and Iran sparked demand for the precious metal.

U.S. Treasuries fell on Tuesday as traders grew concerned over a possible recession triggered by an ongoing downturn in the housing market.

The greenback was mixed against the majors in Tuesday trading, rallying against the yen while relinquishing yesterday’s gains versus the sterling. Fears on the stability of financial firms will continue to weigh on the dollar with earlier

Crude Oil rose over $2 on Tuesday as investors predicted that a report from the U.S. government tomorrow report will indicate a fall in oil inventories.

The dollar fell against the euro and other major currencies on Tuesday as housing troubles continued to raise investors' concern about the state of the U.S. economy.

U.S. stocks dropped on Tuesday, clearing earlier gains as shares of mortgage-related companies plunged on declining home sales and increased economists speculation that Countrywide Financial Corp is facing a fund shortage.

Shares of Apple Inc. rose Tuesday after the company announced two new products , the Xserve server and the new Mac Pro computer, one week ahead of the Macworld Expo in San Francisco.