|
NEW YORK - WALL Street stocks ended mixed on Friday as an early rally sparked by a US$13.4 billion (S$20 billion) US government rescue of General Motors and Chrysler ran out of gas.
The Dow Jones Industrial Average drifted down 33.05 points (0.38 per cent) to 8,571.94 and the tech-dominated Nasdaq rose 11.95 points (0.77 per cent) to 1,564.32 at the closing bell.
The Standard & Poor's 500 broad-market index edged up 1.33 points (0.15 per cent) to a preliminary close at 886.61.
'Even though stocks started the session in positive ground, participants continue looking for direction as they assess ongoing economic weakness, government intervention and stimulus, and historically low stock valuations,' analysts at Briefing.com said.
In an announcement before the market open, the White House said it had agreed to an emergency loan of US$13.4 billion to GM and Chrysler, which had pleaded for a lifeline as they faced imminent collapse.
The rescue could include up to four billion additional US dollars pending congressional approval.
General Motors and privately held Chrysler were expected to draw on the funds immediately to avert bankruptcy, and will be required to implement new belt-tightening moves and demonstrate their long-term viability.
The loans begin to be available on Dec 29.
Yet analysts said the rescue may only delay the collapse of one or more of the carmakers.
Mr Himanshu Patel at JPMorgan Chase said the loans 'will provide a chance to do an out-of-court restructuring' but added that 'an eventual bankruptcy of at least one of the Detroit Three seems more likely than before'. -- AFP
 |
Is this article useful to you?
|
|
|
|
|
|
| 
