Stocks Get Boost From Auto Rescue Plan
Stocks opened higher today after the White House said it would provide the auto industry with as much as $17.4 billion in loans.
The news reassured investors who have been worried about broader economic ramifications of a bankruptcy by General Motors or Chrysler, an option the Bush administration mentioned yesterday. These companies are among the nation's largest employers, and a collapse could cause hundreds of thousands of workers to lose their jobs.
The White House will let automakers draw $13.4 billion in short-term financing, and $4 billion more will be added later.
After 20 minutes of trading, the Dow Jones Industrial Average is up 58 points. The Standard & Poor's 500 index is ahead 5 points, and the Nasdaq is up 20 points.
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