Stock Market Holding to Gains
Updated from 1:24 p.m. EDT
Stocks in New York were holding to gains Thursday afternoon as the prospect of a quick bailout for financial firms trumped a gloomy earnings forecast from General Electric (GE) and discouraging economic data.
The Dow Jones Industrial Average was up 207 points at 11,032, and the S&P 500 climbed 24 points to 1210. The Nasdaq added 34 points to 2190.
On Wednesday, the three major indices finished narrowly mixed after a day of erratic trading. Investors were focused on Treasury Secretary Henry Paulson's $700 billion bailout plan for the financial sector.On Thursday afternoon, lawmakers appeared ready to move forward with the bailout package, raising hopes that the bill be finalized by Friday. "This crisis could result in a deflationary period, and that obviously would mean a prolonged, serious -- not recession, but depression," said Peter Cardillo, chief market economist at Avalon Partners. However, the bailout plan is not without a price tag, he said. "It means the printing presses at Treasury will be running on full cylinders," said Cardillo, which means inflation remains a concern, "but it's the lesser of the two evils." Cardillo said that if the Treasury buys back troubled assets, it's a step toward returning confidence to the financial system. The $700 billion price tag, he said, indicates that the Treasury "themselves don't know how much is out there, so they're going to the higher end of what they believe will do the trick." He said that it's possible the plan could end up costing $300 billion or $400 billion, but the ultimate price is uncertain.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV