2:37 pm - US DJIA fall slightly lower - No response to stimulus package !

The Lowdown

The Bush stimulus did not elicit much of a response.
Stocks widened their losses Friday after President Bush's proposal to jumpstart the economy failed to do much for the markets. The Dow Jones Industrial Average dropped 60 points to 12099, leaving the index down 1166, or almost 9%, on the year. The Nasdaq dropped 7 to 2340, and the S&P 500 gave back 8 at 1325.
An early bounce evaporated ahead of the release of the Bush plan, which the administration called "a shot in the arm." The president implored Congress to consider a plan that would add 1% worth of the Gross Domestic Product back into the system. That amounts to a tax cut of roughly $145 billion, the Associated Press reported.
Also in Washington, Treasury Secretary said there was "an urgent need" to pass legislation that would grease the economy's wheels. "We believe the economy is going to continue to grow slowly here, but it has slowed down and the risks are to the downside and the president is very focused on taking actions quickly that will give a boost to our economy as soon as possible this year," Paulson said, according to an article published by Reuters.

The day's economic data was a mixed bag. The December reading of the Leading Index came in slightly worse than economists had expected, but the Michigan Consumer Sentiment Index surprised economists with a January jump, which bodes well for retail sales.
Stocks had gotten an early lift as bargain hunters sought out cheap deals on stocks undervalued during the selloff, but the enthusiasm did not last long.