Wall Street gains as GMAC gets government funds

December 31st, 2008 - 8:36 am ICT by IANS  

New York, Dec 31 (DPA) US stocks gained after the Treasury Department said it would commit $6 billion to support GMAC LLC, the financing arm of General Motors Corp, to save the ailing car giant from bankruptcy.The Treasury said late Monday it would buy a $5 billion stake in GMAC and also lend General Motors an additional $1 billion so that the largest US carmaker can contribute to the financier’s reorganisation as a bank holding company.

The carmaker gained 5.6 percent in trading Tuesday to close at $3.80 per share.

The news buoyed Wall Street, despite word that consumer confidence in the US hit a record low in December as employers continue to shed jobs and amid a gloomy outlook for the next year.

The Conference Board’s measure of consumer confidence fell to 38 in December from the downwardly revised 44.7 in November, as the world’s largest economy grapples with a recession and the worst economic conditions in decades.

The blue-chip Dow Jones Industrial Average gained 184.46 points, or 2.2 percent, to 8,668.39, while the broader Standard & Poor’s 500 Index jumped 21.22 points, or 2.4 percent, to 890.64. The technology heavy Nasdaq Composite Index increased 40.38, or 2.7 percent, to 1,550.70.

The US currency slipped against the euro to 70.89 euro cents from 71.81 euro cents Monday. The dollar also slipped against the Japanese currency to 90.24 yen from 90.67 yen Monday.

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