RTRS: GLOBAL MARKETS-U.S. stocks turn late in day, gold rises
* U.S. stocks turn on report of government home loan plan
* U.S. oil settles below $34, lowest in nearly two months
* U.S. dollar rises, government debt mixed
* Gold hits record highs in sterling terms, Indian futures (Adds to close of U.S. markets)
By Herbert Lash
NEW YORK, Feb 12 (Reuters) - U.S. stocks turned in late trade on Thursday on news of a U.S. program to subsidize home loans, easing investor concerns about the effectiveness of the Obama administration's recovery plan.
The Dow and S&P 500 cut steep losses after Reuters, citing sources familiar with the plan, said the Obama administration is hammering out a program to subsidize mortgage payments for troubled homeowners, marking a major break with existing aid.
"It's being viewed as a positive both for the mortgage industry and home building industry as well," said Richard Sparks, senior equities analyst at Schaeffer's Investment Research in Cincinnati, Ohio.
The news came as a ray of hope after dismal economic data from Asia and Europe that pointed to deflation in Japan and record plunges in industrial output in the euro zone had weighed on markets for most of the day.
