NEW YORK (Reuters) - The Nasdaq climbed to a session high on Wednesday, while the S&P 500 turned positive and the Dow pared losses following news that Citigroup Inc will support legislation to stem foreclosures.
* Three Democratic senators said they would announce a deal later on Thursday, under which Citigroup is expected to support a law that would allow bankruptcy courts to alter the terms of mortgages, congressional aides said.
* The plan "has a long-term positive effect on the economy. The stock market looks six months out and something along these lines will help the market," said Tim Smalls ,head of U.S. stock trading at Execution LLC in Greenwich, Connecticut.
* The Dow Jones home construction index <.DJUSHB> climbed more than 3 percent. The mortgage news tempered worries sparked earlier by a disappointing December sales report and a dim profit outlook from Wal-Mart Stores Inc
(Reporting by Ellis Mnyandu; additional reporting by Deepa Seetharaman; Editing by Leslie Adler)
