Stocks Swing Higher

Updated from 1:50 p.m. EST

In a session of mixed trading, stocks in New York were lately edging higher Wednesday, as investors eyed the prospect of a bailout for the automakers and digested several disheartening economic reports.

The Dow Jones Industrial Average was lately adding 52 points at 8471, and the S&P 500 was gaining 6.6 points to 855. The Nasdaq tacked on 18 points to 1468.

Traders were closely watching the automotive sector as the Big Three U.S. car manufacturers continued to petition Congress for emergency funds. Ford (F Quote) and General Motors (GM Quote) on Tuesday had presented business plans to Congress in hopes of garnering a federal bailout. General Motors asked for $12 billion in low-interest financing and a $6 billion line of credit, and Ford requested $9 billion in government aid.

GM and Chrysler also said they would need $4 billion and $7 billion respectively just to make it to the end of 2008. GM President and COO Frederick Henderson said that bankruptcy was not an option for his company, and Chrysler vice chairman Jim Press said that a failure by a major automaker could send the economy into a depression.

Marc Pado, U.S. strategist for Cantor Fitzgerald, said that because it is so difficult to raise money in the open market, the government needs to help the automakers. He also stressed that the deal before Congress is not a bailout, but rather a bridge loan that is a vital prop to the fragile economy. "If you do not want to see 10% unemployment, you need to act on GM and Ford and Chrysler," he said.

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