Stocks Rise as Automakers Get Lifeline, Oil Prices Sink
Investors were relieved to learn that the Bush administration has put together a $17.4 billion loan package for General Motors and Chrysler. Meanwhile, oil prices plummeted to a 5-year low below $34 a barrel. The Dow gained 83 points to 8688 while Nasdaq surged 28 points to 1580.
On the upside
Shares of General Motors (NYSE: GM) and Ford (NYSE: F) and auto suppliers rose even as a number of factories began shutting down in order to cut expenses and reduce inventory.Shares of Oracle (Nasdaq: ORCL) rose after the software giant posted a slight dip in profits to show good resilience amid the global economic slowdown.
Sterling Construction (Nasdaq: STRL) raised its 2009 revenue outlook and suggested that federal infrastructure programs may boost business in Nevada and Texas.
On the downside
Shares of medical device maker ArthroCare (Nasdaq: ARTC) tumbled after its CFO resigned over accounting issues related to the company's acquisition of DiscoCare.
Intrepid Potash (NYSE: IPI) joined its fertilizer industry peers to lower sales expectations of potash and langbeinite.
In the broad market, advancing issues outpaced decliners by a margin of more than 2 to 1 on the NYSE and by more than 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks gained 10 points to 490.
