YAHOO[BRIEFING.COM]: Stocks snapped a five-session losing streak as participants took advantage of oversold conditions. With stocks down roughly 10% during the five sessions leading up to the open, strong gains overseas provided an excuse for buyers to enter the fold and short-sellers to cover their positions.

Foreign indices upended their own losing streak after China announced it will add approximately $586 billion to the fiscal spending plan it announced late last year. Industrial heavyweights were primary beneficiaries.

Gains in the U.S. were put in check, though, as shares of General Electric (GE 6.69, -0.32) dropped almost 20% in early trading to their lowest point in 17 years. Investors had grown fearful that the company may lack the capital to maintain its AAA credit rating, despite lowering its dividend; credit agencies have already warned they are reviewing GE for possible downgrade.

Such a threat forced selling in GE, sending a negative signal to the broader market.

GE attempted to calm concerns by stating it has a strong capital position with ample liquidity. Meanwhile, insiders have been casting a vote of confidence by purchasing the stock. Shares of GE reversed most of their losses to close with a loss of roughly 4.6%.

Given the concerns surrounding GE, which make it trade as if it were a financial company, the stock's ability to rally provided support to the broader market. Stocks were up 4% at their session high, but a late flurry of selling ate into the advance.

Financials began the session with strong gains, climbing to an early gain of 3.5% before tumbling to 3.5% loss. Financials pared the loss when Reuters reported a congressional subcommittee is expected to hold a Mar. 12 hearing on mark- to-market accounting rules. Mark-to-market accounting has been blamed for forcing banks to record billions of dollars in writedowns. In turn, modification of the mark-to-market rules is considered to be one of the key steps that Congress could take to stabilize assets on bank balance sheets.

Diversified banks (-10.2%) were among the weakest performers in the financial sector. U.S. Bancorp (USB 11.01, -1.57) was a primary laggard after it announced it will cut its dividend 88% to $0.05 per share. The company said the move will fortify its capital base and expand its strength.

There was little other corporate news for traders to take in. Discount retailer Big Lots (BIG 17.15, +2.61) posted better-than-expected quarterly earnings and issued upbeat guidance. BJ's Wholesale (BJ 29.42, +1.98) also an upside surprise. Costco (COST 40.81, +0.12) missed the consensus earnings estimate.

Google's (GOOG 319.92, -6.56) CEO stated the company is not immune to downbeat economic conditions. Shares of GOOG were unable to share in the strength of other large-cap tech names. Tech (+2.7%) currently sports the best year-to-date performance of any sector in the S&P 500, though it is down 4.6% since the start of the year.

According to the Fed's Beige Book, the Fed does not expect a significant economic recovery until late 2009 or early 2010.

Meanwhile, the ISM Services Index for February dipped to 41.6% from 42.9%, indicating continued contraction for the services sector. The consensus estimate was pegged at 41.0%.

Investors and economists got a glimpse of what may be lurking in the government's February nonfarm payroll report, which is due at the end of the week. According to the latest ADP Employment Report, 697,000 jobs were lost in February. The consensus estimate called for 630,000 job losses. The ADP report isn't always precise in counting job losses, but has been accurate in forecasting trends.DJ30 +149.82 NASDAQ +32.73 SP500 +16.54 NASDAQ Dec/Adv/Vol 790/1866/2.15 bln NYSE Dec/Adv/Vol 625/2485/1.80 bln