Stocks in New York opened to the upside Tuesday, as the government refueled
financing arm and investors looked to the release of consumer confidence data.
Dow Jones Industrial Average
was up 58 points at 8541, and the
was gaining 5 points at 874. The
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.
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.
, 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
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.
In other commodities, gold was recently down $5.80 at $869.50 an ounce.
Longer-dated U.S. Treasury securities were recently falling. The 10-year note was giving up 7.5/32 to yield 2.1%, and the 30-year was down 12/32, yielding 2.7%. The dollar was weaker against the euro and, and stronger against the pound and yen.
Overseas, European exchanges such as the FTSE in London and the DAX in Frankfurt were registering slight gains. In Asia, Japan's Nikkei ended higher while and Hong Kong's Hang Seng nudged lower.
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