Financial & Business News from Eyewitness News Online

WALL STREET Stocks fade after recent rally
UNDATED
Stock prices have edged lower at midday. Investors are wondering about Greece's ability to pay its debts after stocks have posted solid gains in recent days.

Greece said it might need to turn to the International Monetary Fund for support if European leaders can't agree to a bailout plan next week. Worries about Greece's ability to handle its massive debt load have been blamed for periodic bouts of stock selling in the U.S. and overseas over the past two months.

The Dow has risen for the past eight straight sessions, the longest streak of gains since August. The Dow gained nearly 46 points Thursday to reach its highest close since Oct. 1, 2008.

OBAMA Obama rallies support for final health care votes
FAIRFAX, Va.
President Barack Obama is making a final push for this weekend's health care vote.

With Sunday's expected vote hanging on the support of just a handful of wavering Democrats, Obama delivered a closing argument at a large, raucous rally at a suburban Virginia college.

He said, quoting here, "the insurance industry will continue to run amok" if the vote fails. Obama urged lawmakers to reach beyond today's disputes and grasp the history-making aspect of the effort.

Support is building in the House, with intense lobbying and politically targeted changes to the bill winning over an Ohio Democrat. Rep. John Boccieri announced at a news conference that he would switch his vote to "yes" in favor of the 10-year, $940 billion legislation.

BOEING-PRODUCTION SPEED UP Boeing accelerates production
NEW YORK
Boeing will speed up production plans for its 777 and 747 models. It expects greater demand from commercial airlines in a couple of years.

Both are wide-body planes capable of carrying more than 300 passengers and flying longer routes. Several Asian airlines have ordered the planes, which are also more fuel-efficient than other aircraft models.

Asia experienced a smaller dropoff in air travel demand than the rest of the world and has seen a stronger recovery. A recent report by the International Air Transport Association says Far East and Asian markets "continue to show very strong growth."

Most major airlines reported losses in 2009 as travel demand slumped. The aircraft maker says it sees the airline industry recovering this year, followed by a return to profitability in 2011. That should lead to demand for new aircraft in 2012 and beyond.

LOAN HELP-CREDIT SCORES Credit scores can drop after getting loan help
WASHINGTON
Some homeowners who sign up for the government's mortgage assistance program are getting a nasty surprise: Lower credit scores.

For borrowers making their payments on time but are on the verge of default, the Obama administration's loan modification program can reduce credit scores as much as 100 points. That makes it harder to get a loan and can present a problem when applying for a new job.

Housing counselors say it's unfair, especially because the news often comes as a surprise to homeowners.

Still, the impact is far less severe than a foreclosure, where borrowers typically find their credit is in tatters for years. That's due to the cumulative impact of many months of missed payments and the foreclosure itself, which drags down a homeowner's' credit by 150 points or more on a scale of 300 to 850.

LIONS GATE-ICAHN Icahn launches hostile bid
NEW YORK
Carl Icahn is raising the stakes in his yearlong dispute with Lions Gate Entertainment. He's launched an all-out bid to take over the movie studio following disagreements over its spending.

The hostile bid comes a week after Lions Gate rejected Icahn's offer to buy a larger stake and rewrote its bylaws to make such a takeover attempt more difficult in the future.

Icahn owns almost 19 percent of Lions Gate, and his tender offer of $6 a share last month would have raised his stake to nearly 30 percent. That bid represented a 15 percent premium over the stock's latest closing price at the time.

Lions Gate management has said Icahn's bid undervalues the studio and that a larger stake would have given Icahn too much say in major decisions. The company also warns that a change in control could trigger a default in a $340 million credit line from JPMorgan Chase because it would amount to a change in control.

Now, Icahn is bidding for a majority stake in the company and said he is willing to buy all outstanding shares.