Government To Prevent 9 Million Foreclosures, Absorb Losses

The markets posted modest gains during the midday as investors digested government plans to prevent 9 million foreclosures and absorb nearly $200 billion in losses from Fannie Mae and Freddie Mac. The Dow gained 37 points to 7589. Nasdaq rose 11 points to 1482.

On the upside

CardioNet (Nasdaq: BEAT) reversed year ago losses to post a profit for the fourth quarter as revenue surged.

American Medical Systems Holdings (Nasdaq: AMMD) swung to a profit for the fourth quarter that topped analyst expectations.

Fourth quarter earnings for Volcano (Nasdaq: VOLC) beat expectations.

On the downside

Celera (Nasdaq: CRA) swung to a loss for the fourth quarter.

Excel Maritime (NYSE: EXM) announced that its proposed business combination with Oceanaut has been terminated and that Oceanaut (AMEX: OKN) will dissolved and liquidated pending shareholder approval.

NUCRYST (Nasdaq: NCST) disappointed with fourth quarter earnings and revenue that plunged by more than half.

In the broad market, declining issues outpaced advancers by a margin of nearly 2 to 1 on the NYSE and by nearly 5 to 4 on Nasdaq. The Russell 2000 which tracks small cap stocks lost 2 points to 427.