Stocks Rally Upon News of Possible Auto Bailout

The Dow Jones went over 9,000 but ended the day at 8,930 points, gaining almost 300 points (+3.46%). The Nasdaq rose over 4% and S&P 500 ended 3.84% up, as investors were hopeful about the government bailing out automakers to the tune of $15 billion. The White House has reportedly received a draft of a bill from Congress, and the Senate Majority Leader Harry Reid said passage would be possible if "senators are willing to work together in the next few days." The bill would help the Big Three automakers stay in business for a few months; Rep. Barney Frank said $15 billion was not enough but "It's better than nothing."

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By Jen Chung in News on December 8, 2008 6:56 PM

Comments [rss]

r1b2

Nice blip yesterday, brought some fresh meat into the market, still no fundamentals behind much of it, and so the shorts will be back with a fury.

Toby von Meistersinger

This is just going to cause more problems down the road. One of them has to die so the others might live. It is that simple. Well that and the big bloated one that competes with itself by selling the same car/truck under half a dozen different brands needs to reduce. Ford is the only one with a decent chance, since they have some really good fuel efficient product, but they just don't sell it in the US.

drewo

The bill would help the Big Three automakers stay in business for a few months.

So they'll change their business plans and Americans will flock to buy their automobiles? All in a few months?

Money not well spent.