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U.S. markets mixed

NEW YORK, Dec. 9 (UPI) -- U.S. stock markets were mixed Tuesday after posting gains in eight of the last 10 trading sessions.

Japanese electronics giant Sony reminded investors that the recession was not over, announcing 8,000 job cuts Tuesday morning.

In late-morning trading, the Dow Jones industrial average fell 73.92 points, or 0.83 percent, to 8,860.26. The Standard & Poor's 500 rose 0.05 percent, 0.42 points, to 910.12. The Nasdaq composite index fell 1.30 percent, down 20.39 points, to 1,592.13.

The benchmark 10-year U.S. Treasury bond rose 5/32 to yield 2.727 percent.

The dollar was mixed. The euro fell to $1.2851, compared to $1.294 Monday. Against the Japanese yen, the dollar fell to 92.50 from Monday's 92.97 yen.

In Tokyo, the Nikkei average gained 66.82 points to 8,395.87, up 0.8 percent.

Sony to cut 8,000 jobs

TOKYO, Dec. 9 (UPI) -- Japanese electronics giant Sony said it would react to the economic downturn by cutting 8,000 jobs, a move Sony said would save $1.1 billion a year.

The company also said it would close about 10 percent of its 57 production facilities and delay plans to expand LCD television production in Slovakia, The New York Times reported Tuesday.

In a statement, Sony said it would "reduce investment in the electronics business by approximately 30 percent," through the fiscal year that ends March 2010.

Japanese exports are swimming against the tide as the yen gains strength against the dollar and the euro, which causes prices of its products to rise.

But, the Japanese domestic market is also floundering, the Times reported.

In the third quarter, the Japanese economy fell into a recession. It is not expected to pull ahead until the second half of 2010, the Time said.

Modified mortgages fall back into default

WASHINGTON, Dec. 9 (UPI) -- Modifying mortgages failed to prevent defaults in more than half of the cases in the first half of the year, a federal regulator said.

In the first quarter of the year 53 percent and in the second quarter 51 percent of borrowers with modified mortgages fell back into default despite modifications made to help them stay ahead on payments, U.S. Comptroller John Dugan told CNNMoney.com.

The Office of the Comptroller of the Currency is asking lenders for more details so a new strategy for heading off foreclosures can be developed, Dugan said.

"These answers are important, because they have important ramifications for the foreclosure crisis and how policymakers should address loan modifications," he said.

Federal Deposit Insurance Corp. Chairwoman Sheila Bair said 15 percent of modified mortgages fail again if the interest rates are modified.

"The quality of the modifications are not what they should be," she said.

Bair has proposed extending loans to 40 years or lowering interests to as low as 3 percent to keep mortgages from default, CNNMoney.com reported.

People urged to 'call in gay'

SAN FRANCISCO, Dec. 9 (UPI) -- Gays will try to heighten the straight community's awareness of their rights and impact on the U.S. economy this week by staging a calling in "gay" to work day.

Organizers are calling it "Day Without A Gay," the Bay Area Reporter said. They have set up a Web site -- http://www.daywithoutagay.org -- and say heterosexuals are being encouraged to take part Wednesday.

Gay film producer David Craig, 44, of Los Angeles, one of the promoters, said the idea isn't to foment chaos.

"We're not going to destroy the economy for the day," he said. "It's about placing your rights above your pocketbook and contributing to society in other ways."

Not everyone who favors equal treatment for gays is on board with the plan, given the recession.

"In this economy? I think it's a misguided effort," said Patrick Batt, who owns Auto Erotica in San Francisco.

Batt said a similar effort in the 1970s didn't produce the desired result.

"That didn't happen in the 1970s, and I'd be surprised if it happened now," he said.

Sean Hetherington, a 30-year-old trainer and stand-up comic who lives in West Hollywood, suggested people who "call in gay" not just ditch work and sit at home. He and others are suggesting people use the day to do volunteer work.