Stocks Little Changed After Snapback Rally

NEW YORK (AP) - Wall Street has zigzagged through a relatively calm session, closing with modest losses as financial markets uneasily awaited a Senate vote on the government's banking sector
bailout.

The credit markets, meanwhile, were still under strain pending the vote expected tonight. Several big companies are reporting that they're feeling the impact of reduced lending.

Disappointing economic news, including a report of further weakening in the manufacturing sector, also weighed on stock trading.

The Dow Jones industrials, down more than 200 points in early trading, recovered to a loss of about 19 points at the 10,831 level. The Nasdaq composite index fell more steeply, losing 1 percent.

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Some lawmakers may be shifting on bailout plan

WASHINGTON (AP) - As the Senate moves toward passage of a 700-billion-dollar rescue plan for the financial markets, opposition in the House appears to be softening.

One House Republican who, along with two-thirds of his GOP colleagues, voted against it on Monday has indicated he's reconsidering. John Shadegg of Arizona told a Phoenix radio station he'd be "inclined to vote for the bill" if it raises the cap on federal deposit insurance, and also changes a rule on the value of company assets.

Congressional officials say others are also thinking about a switch. Leaders of both parties say they hope a new version of the plan can be approved by late this week.

The revised package coming before the Senate adds 100 billion dollars in tax breaks for businesses and the middle class. It also temporarily raises the deposit insurance cap from the current $100,000 to $250,000.

There's been a flood of e-mails, calls and letters from constituents angry that Congress hasn't acted on the financial crisis. House Republican Whip Roy Blunt says the messages were running about 90 percent against it earlier, and are now about 50-50.

Bush says Congress must pass financial rescue bill

WASHINGTON (AP) - President Bush is telling the Senate to take the financial rescue package "very seriously" and to pass it.

Bush told reporters today he's confident that the measure will be approved in the Senate later in the day. He said the House is voting Friday.

The president says the bill is improved from its earlier version, including addition of a temporary increase in federal deposit insurance.

Bush said that it is very important for lawmakers to pass the bill to get credit flowing again and keep the nation's economic picture from getting worse.

Obama says financial crisis 'won't happen again'; McCain says tough times show what Americans can achieve

The Democratic presidential candidate also says it's time for Congress "to take some clear action" on a financial rescue for Wall Street.

John McCain, meanwhile, says tough times have a way of showing what Americans can achieve. In an economic speech today in Missouri, McCain said the current financial crisis is an opportunity for the nation to come together.

McCain and Obama will be in Washington for the Senate vote.