Stocks Open to the Upside

Stocks in New York opened to the upside Tuesday, as the government refueled General Motor's (GM Quote) financing arm and investors looked to the release of consumer confidence data.

The Dow Jones Industrial Average was up 58 points at 8541, and the S&P 500 was gaining 5 points at 874. The Nasdaq was up 9 points at 1519.

The Treasury Department said it will provide $5 billion to GMAC Financial Services, GM's auto and mortgage financing arm, to keep it from filing for Chapter 11. In return for the capital infusion, the government will receive preferred shares that pay an 8% dividend and warrants to purchase additional shares. The Treasury will also extend up to $1 billion to GM, enabling the company to purchase additional equity as GMAC strives to raise more capital.

The Federal Reserve last week approved GMAC's application to become a bank holding company, a designation that would give the company access to government programs, including Troubled Assets Relief Program, or TARP.

Later today, the Chicago purchasing managers' report and the first consumer confidence figures since the Christmas holiday (also the last of the year) will be released.

Fallout from a lackluster holiday sales season continues to play out in the retail sector. Parent Co. (KIDS Quote), which operates etoys.com, is the latest victim to fall, filing for Chapter 11 bankruptcy protection this week.

Stocks in New York ended with modest losses Monday following the scuttled joint venture between Kuwait's government and Dow Chemical (DOW Quote).

Oil was recently down 45 cents at $39.57 a barrel, after rising above $40 a day prior on the possibility that Israeli attacks in Gaza could lead to restrictions in regional supply.