Bulls Make Late Move to Send Wall Street Higher

Updated from 3:12 p.m. EST

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

The Dow Jones Industrial Average climbed 172.60 points, or 2.1%, to 8591.68, and the S&P 500 gained 21.93 points, or 2.6%, to 870.74. The Nasdaq tacked on 42.58 points, or 2.9%, to 1492.38.

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 shares added 1% to $4.90, and Ford rose 5.6% to $2.85.

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.

The United Auto Workers union also reportedly said that it would accept alterations to its contracts, agree to wait on payments for to its health care trust and make significant changes to its jobs bank, which pays workers who aren't actually working.

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.