19 Nov : US stocks made gains on Tuesday as investors took comfort in computer maker Hewlett-Packard’s upbeat outlook amid a series of depressing company news anddeteriorating economic conditions.
The Dow Jones Industrial Average rose 125.60 points (1.52 per cent) to 8,399.18 around 1633 GMT and the Nasdaq climbed 2.01 points (0.14 per cent) to 1,484.06.The broad Standard & Poor’s 500 index advanced 8.03 points (0.94 per cent) to 858.78.
"Concerns about the economy and the stock market’s continued poor showing weighed heavily on sentiment," said Patrick O’Hare, analyst at Briefing.com.
He said the market would be focused on testimony by Treasury Secretary Henry Paulson, Federal Reserve chairman Ben Bernanke and Federal Deposit Insurance Corporation chairwoman Sheila Bair before the House of Representatives Financial Services Committee.
The three officials discussed the 700 billion dollar Troubled Asset Relief Program authorised last month for the financial sector, amid growing calls to shore up the ailing auto industry.
"The purpose of the financial rescue legislation was to stabilize our financial system and to strengthen it. It is not a panacea for all our economic difficulties, Paulson told lawmakers, reiterating opposition to using the funds for the auto industry.
The heads of the Big Three automakers — General Motors, Ford and Chrysler — were to plead their case later Tuesday before a Senate panel.
A key indicator of price pressures in the manufacturing pipeline — the Labour Department’s producer price index — plunged a record 2.8 percent in October in a further sign of economic woes.