YAHOO[BRIEFING.COM]: A government plan to stem foreclosures and a restructuring plan from General Motors (GM 2.06, -0.12) did little to pull investors away from the sidelines, leaving stocks to spend the session trading sideways in choppy fashion.

As part of an effort to stem foreclosures and promote an attractive mortgage market, the government is increasing funding to Fannie Mae and Freddie Mac by expanding the allowable size of the GSEs' retained mortgage portfolios to $900 billion from $850 billion, while also purchasing Fannie Mae and Freddie Mac mortgage-backed securities. Fannie Mae and Freddie Mac will receive increased preferred stock purchase agreements from the Treasury as well.

The plan aims to help certain homeowners refinance GSE conforming mortgages, and offers banks incentives to reduce payments for borrowers. Still, the news did little to stir a reaction among market participants, who continue to wait and see what other plans will be unveiled to help restore conditions in the housing market, financial sector, and broader economy.

Economic data remains bleak. January housing starts were lower than expected, falling to their lowest level in decades. Industrial production in January was also worse than expected. Monthly building permits and import prices were generally in-line with expectations, but were still uninspiring.

According to the minutes from the Jan. 28 FOMC meeting, the Federal Open Market Committee believes monetary easing has lowered lending rates, but that has been offset by widening credit spreads, more restrictive lending standards, and dysfunctional credit markets.

Separately, reports indicate former Fed Chairman Greenspan indicated the current global recession will be the longest and deepest since the 1930s, while Chicago Fed President Evans stated the U.S. economy is shrinking at a disturbing pace, and conditions call for more stimulus. To that point, Fed Chairman Bernanke noted the Fed has developed a second set of policy tools that involve the provision of liquidity directly to borrowers and investors in key credit markets.

General Motors unveiled its viability plan, which indicated the company could need as much as $30 billion from the U.S. government, including the $13.4 billion the company has already received. The company is planning heavy layoffs and focusing production efforts on a smaller fleet of autos as part of its effort to stave off bankruptcy, which the company indicated would not be an amicable scenario. Displeased with the plan, investors sent shares of GM lower.

Earnings announcements from Comcast (CMCSA 12.36, -0.53) and Deere (DE 32.23, -1.26) also failed to inspire market participants. Comcast had posted better-than-expected results and increased its dividend. Deere fell short of the consensus earnings estimate.

Though limited, the session's buying efforts were focused in the consumer staples sector (+0.7%) and the technology sector (+0.4%). They were the only two sectors in the S&P 500 to finish higher. In the consumer staples, Wal-Mart (WMT 50.00, +1.76) traded as a leader for the second straight session, while large-cap tech helped the tech sector.DJ30 +3.03 NASDAQ -2.69 NQ100 +0.2% R2K -1.3% SP400 -1.2% SP500 -0.75 NASDAQ Dec/Adv/Vol 1711/952/2.09 bln NYSE Dec/Adv/Vol 2195/883/1.43 bln