U.S. Markets Rise After White House Bids Aid To Automakers

New York, NY (AHN) - U.S. markets were able to rally off early lows on Friday when the Bush administration indicated it would likely use TARP funds to prevent a collapse of the auto industry.

The markets opened Friday much lower on news the Senate voted down the auto bailout proposal. The release of November retail sales, down 1.9 percent did little to help sentiment either. However, some bargain hunters were out early and stocks managed to creep toward the unchanged mark before rallying on the White House bailout comments.

The Dow Jones Industrials rose 64 points or 0.75 percent. A total 21 of 30 Dow components ended Friday with a gain. The Dow's tech components provided the most strength with Intel and Hewlett Packard rising 5.3 percent and 3.4 percent, respectively.

The S&P 500 added 6 points or 0.7 percent. Nine of 10 major economic sectors finished Friday higher with energy, down 0.9 percent, the only laggard.

Tech outperformed the rest of the market. The Nasdaq Composite jumped 33 points or 2.2 percent. Strength came from chip makers as the semiconductor sector surged 4.7 percent on the session.

Crude oil failed to build on Thursday's rally and fell $1.70 a barrel to settle at $46.28. However, the commodity did add 14.1 percent for the week.

On the economic front, the Department of Labor said the price of consumer goods fell in November as the Producer Price Index fell 2.2 percent.

The preliminary consumer confidence reading for December was released by the University of Michigan and showed a boost to 59.1, above the 55.3 reading last month and well ahead of economists' estimates of 54.5.

Elsewhere, Wall Street received a shock when 50-year market veteran Bernard Madoff was charged with one count of securities fraud. Madoff apparently confessed to some senior level employees of his investment firm that the fund was insolvent and had been for years; approximating losses would reach $50 billion for his investors.

For the week, the Dow Industrials and S&P 500 fell roughly 2 percent.