The Bush Administration's plan to help struggling homeowners avoid foreclosure is the big item on the agenda for Thursday.
The plan, already drawing criticism, will be announced by the President in the afternoon and is expected to include a five-year freeze on the resetting of some of the low introductory, teaser rates that drew in many of the weakest borrowers.
Treasury Secretary Hank Paulson will detail the plan in a 1:45 p.m. briefing with a group that includes Housing and Urban Development Secretary Alphonso Jackson and members of the mortgage industry. CNBC will air President Bush's speech live at 1:40 p.m.
Stocks were fired up Wednesday by the belief the Fed will cut rates when it meets next Tuesday as well as some encouraging economic data. (ADP's preview jobs report showed a surprisingly large number of new jobs in November) As news of the Bush mortgage plan eked out during the day, investors seemed to mostly put it in the category of a necessary move to solve some of what ails the housing industry and credit markets.
"The Fed is telling you ... we're going to make this right and the Treasury Department is telling you ... we're going to make this right," said Peter McCorry who trades financial stocks at Keefe Bruyette.
But about the Bush administration plan, McCorry said "There's so many moving parts. There's so much contention about how they're going to get it to work and how it's going to affect the business end, it's hard to make a judgment."