Updated from 2:04 p.m. EDT
And Tomorrow's Already Wednesday
At 5:35 p.m. EDT
Thanks to a much better than expected reading on consumer confidence, Wall Street had an upbeat start to a short week. The
rose 196.17 points, or 2.4%, to 8473.49 Tuesday as 28 of its 30 stocks advanced.
was the best performer on a percentage basis, up 6.2% to $36.54.
gained 5% to $24.57, and
added 4.6% to $9.27.
Bank of America
, off 0.8% at $10.98, and
, down 0.2% at $47.21, fell.
The story though, was
, which appears to have made some progress with the auto workers. However,
has never been more intense than it will be in the coming days. The company needs bondholders to agree to exchange their debt for equity, and reports suggest it's not looking good for the automaker's offer.
Shares tacked on 1 cent to $1.44 on volume that was more than seven times the daily average.
We'll know more in a few hours. Stay tuned.
Every Stock's Higher
At 1:55 p.m. EDT
went from being the worst performer on the
all the way to positive territory as the automaker scrambled to stay out of bankruptcy court.
Just days ahead of a government deadline to prove its viability, GM has reached an agreement that will give 17.5% of its common stock, along with warrants, preferred stock and a $2.5 billion note, to the UAW's health-care Voluntary Employee Beneficiary Association,
The Wall Street Journal
Meanwhile, retiree benefits will be cut immediately, the paper said. The
reported that most hourly employees will get buyout offers or requests to retire early.
Better late than never? I guess we'll see, but this last-minute cost-cutting is certainly making things interesting. There's still that problem with getting the bulk of bondholders to agree to go along. Lately, GM was up 5 cents at $1.48. Earlier, it was as low as $1.12.
All 30 stocks on the Dow are now in the green, and the index is up more than 200 points.
Now That's Power
At 11:40 a.m. EDT
Don't ever doubt the importance and influence of the U.S. consumer. That's who's single-handedly responsible for the 150-point gain the
was posting at the start of the week.
Let's review a bit of what the market was facing after the long holiday weekend. Worries about North Korea's missile testing,
CEO out with comments talking down
, bleak data on
, which could be looking at a bankruptcy filing within a week.
Not much to be happy about, and we had a sluggish start in New York. No real surprise there.
All that changed a half hour into trading, when the Conference Board said
surged to its highest level in roughly eight months and trounced expectations. Remarkable, astonishing, considering the unemployment readings we've been getting lately. And stocks were off to the races.
Quite simply, this economy falls apart without consumer spending. If consumers believe that the future will be better and start shopping, we might get out of this recession, depression, downturn, slowdown, whatever you want to call it, sooner rather than later.
We shouldn't interpret this as the all-clear, but it's a step in the right direction. We'll need confirmation in the months ahead, and quite frankly if the job market doesn't improve we might not get it. However, for now, it is another sign that we have some reason to hope.
As for the Dow stocks, only three of them were lower, with the aforementioned GM the worst, down 8.4% at $1.31. A report on
indicated that the vast majority of bondholders aren't going for the company's offer to swap their debt for an equity stake.
Bank of America
edged down, the latter despite an
None of the gains were particularly sizable, though several companies were advancing 3% or more, including
was little changed following reports that it could be raising more than $10 billion through a debt offering that would help it complete the planned acquisition of
. Lately, the shares were up 1 cent at $14.97.
For now, I'll wrap up by pointing you toward an
might be a good buy at these levels.