Market Wrap-Up

Prospects of another government rescue plan for the economy reversed an early slide in stocks, though big names in banking like Citigroup (C) and Bank of America (BAC) still took hard hits. The Dow Jones Industrial Average was down as much as 200 points during morning trading. But by the close those losses were erased. The Dow gained 12 points to 8,212.

Reports that Democrats in the House of Representatives had drafted an $825 billion stimulus plan with $275 billion in tax cuts turned the market around near midday. The prospect of Congress releasing another $350 billion from the TARP fund also helped. But Bank of America took it on the chin because it announced it would need billions of dollars from the government to complete its acquisition of Merrill Lynch.

Oil prices dropped again, closing at $35.40 a barrel on the New York Mercantile Exchange after OPEC forecast a 4.2% drop in demand and the U.S. Department of Energy said supplies climbed 2.5% in the last week.

Alternative energy got a boost after news that First Solar (FSLR) would supply equipment to power Masdar, a carbon-neutral city in the United Arab Emirates.

Winners

The Market Vectors Solar Energy (KWT) and the Claymore/MAC Global Solar Energy (TAN) ETFs, both of which feature First Solar as their top weighted holding, finished up 4.9% and 5.5% respectively.

Losers

With nearly 20% of its holdings split almost equally between Citi and Bank of America, both of which took a beating Thursday, the SPDR KBW Bank ETF (KBE) limped to a weak finish, losing 7.8%. The iShares Dow Jones U.S. Financial Services fund (IYG) also closed down 6.1%. Another day of falling oil prices hit the United States Oil Fund (USO), which lost 3.4% by the close.

Friday's Notebook

Earnings & Conference Calls

First Horizon National, Johnson Controls, PPG Industries

Economic Data

8:30 a.m. Dec. Consumer Price Index
8:30 a.m. Dec. Consumer Price Index
9:15 a.m. Dec. Industrial Production
9:15 a.m. Dec. Capacity Utilization
10:00 a.m. Mid-Jan. Reuters/Univ. of Mich. Sentiment Index

Quick Take

A look at how the industry's most popular ETFs did on Thursday: