Author: Elena Todorova
123jump.com
Last Update: 11:58 AM EDT August 20 2007

U.S. stocks reversed from earlier gains to trade near the flat line, with investors speculating on the Federal Reserve''s next move. Hopes of further interest rates cuts were raised by another report of trouble in the subprime mortgage market. Residential-mortgage lender Thornburg Mortgage dropped 11% after it said it sold a considerable part of its triple-A-rated mortgage securities portfolio. Nasdaq Stock Market rose 3.6% after it said it will put its 31% stake in the LSE for sale.