NEW YORK, Aug. 21 (UPI) -- U.S. stock indexes turned lower Thursday as oil prices rose and financial concerns continued to show signs their troubles weren't over.

The Federal Home Loan Mortgage Corp. and the Federal National Mortgage Association continued to show weakness, share values falling 13 percent and 17 percent, respectively. Mortgage finance dropped 2.24 percent as a group Thursday morning.

The Dow Jones industrial average was down 61.64 points in midmorning trading, down 0.54 percent to 11,355.79. The Nasdaq index fell 14.66 points, or 0.61percent, at 2,374.42 points. The Standard & Poor's 500 lost 5.89 points to 1,268.65, down 0.46 percent.

The 10-year U.S. Treasury note fell 12/32 to yield 3.848 percent.

Against the euro, the U.S. dollar was at $1.4836 from Wednesday's $1.4744. The dollar against the yen fell to 108.58, compared with Wednesday's 109.78.

In Tokyo, the Nikkei average shed 99.48 points to 12,752.21, off 0.77 percent.

Canadian CPI rose 3.4 percent in July

OTTAWA, Aug. 21 (UPI) -- Canada's Consumer Price Index shot up 3.4 percent in July on an annual basis, largely due to higher gasoline prices, Statistics Canada reported Thursday.

The year-over-year jump was the highest since March 2003, which the agency attributed to a 28.6 percent increase in gas prices over 12 months for the increase.

Within the transportation sector, StatsCan said lower passenger vehicle purchase and lease prices partially offset the impact of rising gasoline prices.

Excluding gas prices, consumer prices increased 2.1 percent, up from the 1.8 percent 12-month rate of growth posted for June, the report said.

On an annual basis, food prices were up 4.3 percent, mostly driven by grain products such as cereal, rice, pasta and flour and flour based mixes, the agency said.

On the offsetting side, prices for computer equipment and supplies continued to fall in July, down 12 percent from a year earlier, StatsCan said.

U.S. airlines seen as down but not out

NEW YORK, Aug. 21 (UPI) -- Troubled times at U.S. airlines may not be over, but there is some light at the end of the tunnel, aviation industry analysts say.

The biggest change in the last two months and a surprise to many is the sudden retreat of oil prices, which peaked July 11 above $147 per barrel, USA Today reported Thursday.

Crude oil prices have fallen more than $30 per barrel since then.

In the meantime, airlines have cut back on flights to cull unprofitable routes and pressure passengers to fill empty seats. They have also added numerous fees that they expect will bring in hundreds of millions of dollars.

Stock values reflect the new potential. Although one or more airline may fail, the industry's stock index has almost doubled from 12.66 to 21.67 since July 15, the newspaper reported.

Analysts William Greene at Morgan Stanley (NYSE:MS) said the drop in oil prices was a "game-changing event," the newspaper reported.

In an Aug. 12 report, analysts at JPMorgan said the "industry today is a significantly different one than that which gave us pause last March."

FDIC rewrites loan terms at IndyMac

WASHINGTON, Aug. 21 (UPI) -- U.S. regulators plan to rewrite terms on about 25,000 troubled Indymac Bancorp, mortgages that could set a trend for other lenders, an official said.

Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., said she hoped steps such as cutting some rates to 3 percent for five years and stretching some mortgages to 40 years would set an example for the other banks, the Los Angeles Times reported Thursday.

On some loans, regulators are rewriting terms to charge interest on only part of the principle, the Times reported.

The FDIC, which took over the failing IndyMac Bank on July 11, plans to modify about 37 percent of the bank's most delinquent loans, the newspaper said.

Regulators had stopped foreclosure proceedings on about 40,000 loans when it took over the bank.

Bair told the Times a strong response from borrowers would help the program "become a catalyst" for the nation's troubled mortgage industry.