Bush Saves Automakers, Stocks Mixed, Retailers Suffer

In an unprecedented gesture, outgoing President George Bush approved a $17.4 billion dollar bailout plan for the injured U.S. auto industry. This positive news was counteracted by retail sales being hurt by a Christmas shopping season snow storm and the slow economy. Stocks closed mixed on quadruple witching today with the DJIA dipping -25.88 to 8579.11, the Nasdaq adding +11.95 to 1564.32 and the broad based S&P 500 stepping ahead +2.60 to 887.88.

Research In Motion
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– The maker of the popular Blackberry smart phone climbed 11.13% or $4.28 to $42.72/share after stating it would beat sales estimates.

Provident Bankshares
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– Surged an astounding 60.34% or $3.50 to $9.30/share after M&T Bank agreed to purchase the company.

MAP Pharmaceuticals
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– Jumped 28.32% or $1.30 to $5.89/share upon announcing a joint venture with AstraZeneca to develop its asthma treatment formula.

General Motors
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– Experienced the largest gain in the DJIA, adding 22.68% or 0.83 cents to $4.49 due to Bush’s financial rescue plan.

Oil added $2.35 to $33.87, gold dropped $23.20 to $837.40 and the fear index VIX dipped 5.07% to 44.94.

Market Snapshot

Dow

-25.88 8579.11

NASDAQ

+11.95 1564.32

S&P 500

+2.60 887.88

Economic
News

NY Empire State Index (Dec): Consensus -27.0, Prior -25.4

Net Foreign Purchases (Oct): Consensus NA, Prior $66.2B

Capacity Utilization (Nov): Consensus 75.9%, Prior 76.4%

Industrial Production (Nov): Consensus -0.5%, Prior 1.3%

Building Permits (Nov): Consensus 700K, Prior 708K

Core CPI (Nov): Consensus 0.1%, Prior -0.1%

CPI (Nov): Consensus -1.3%, Prior -1.0%

Housing Starts (Nov): Consensus 730K, Prior 791K

FOMC Policy Statement: Consensus NA, Prior NA

Crude Investories (Dec 13): Consensus NA, Prior NA

Initial Claims (Dec 13): Consensus NA, Prior NA

Leading Indicators (Nov): Consensus -0.5%, Prior -0.8%

Philadelphia Fed (Dec): Consensus -40.0, Prior -39.3

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