Wall Street rebounds after huge sell-off

Special Report:Global Financial Crisis

Traders work on the floor of the New

York Stock Exchange, Dec. 2, 2008. U.S. stocks extended gains on Tuesday,

sending the Dow and SP 500 up more than 2 percent as investors grew

optimistic about a rescue for the U.S. auto industry. (Chinese media/Reuters

Photo)
Photo

Gallery

NEW YORK, Dec. 2 (Chinese media) -- Wall Street rebounded

Tuesday from the worst tumble since October, as investors bought on dips after

Monday's huge sell-off and as Ford reassured the market with its financial

health.

Some bargain hunting is not a surprise Tuesday after

the skid that sent the Dow Jones industrials down 679.95 points on Monday.

Ford Motor said it will seek nine billion U.S.

dollars in government loans but may not need the money because it plans to

return to a pretax profit or break even in 2001. As investor closely watched the

future of automakers, Ford's assessment of its financial health helped the

market bounce back strongly.

Traders work on the floor of the New

York Stock Exchange, Dec. 2, 2008. U.S. stocks extended gains on Tuesday,

sending the Dow and SP 500 up more than 2 percent as investors grew

optimistic about a rescue for the U.S. auto industry.(Chinese media/Reuters

Photo)
Photo

Gallery

The U.S. three auto giants are scheduled to testify

before the U.S. Congress Thursday and Friday, after they submit their business

plan update Tuesday. General Motors, Ford and Chrysler are seeking 25 billion

U.S. dollars financial support from the U.S. government.

Financial sector bounced despite a report in The Wall

Street Journal said that Goldman Sachs Group Inc. could face losses of about 2

billion U.S. dollars in the fiscal fourth quarter.

The Dow Jones rose 270.00, or 3.31 percent, to

8,419.09. The Standard Poor's 500 index rose 32.60, or 3.99 percent, to

848.81,while the Nasdaq composite index gained 51.73, or 3.70 percent,

to1,449.80.

Wall Street plunges amid economic

woes

NEW YORK, Dec. 1 (Chinese media) -- Wall Street

plunged amid economic woes Monday as investors cashed in some of their gains

from the big rally in the previous week and key economic reports showed economic

slowdown.

Retail sales data failed to boost the market. According to

preliminary calculation by RCT Shopper Trak, a research firm that tracks total

retail sales at more than 50,000 outlets, sales rose slightly on Black Friday,

which is traditionally one of the biggest shopping days of the year, showing

that consumers are cautious as the economy slows down. Full story

Official panel: U.S. economy in

recession since December, 2007

WASHINGTON, Dec. 1 (Chinese media) -- U.S. economy has been in a

recession since December 2007, the National Bureau of Economic Research (NBER)

said Monday.

The Business Cycle Dating committee of the NBER, a

private, nonprofit research organization, said its members met by conference

call on Friday.

And the committee "identified December 2007 as the

peak month, after determining that the subsequent decline in economic activity

was large enough to qualify as a recession." Full story

Plummeting auto sales contribute to

budget shortfalls across U.S.

LOS ANGELES, Dec. 1 (Chinese media) -- As the U.S. auto market

marches toward its worst year in decades and dealers close in droves, state and

local governments across the country are preparing for serious

belt-tightening.

Sales of new and used cars, as well as parts and

service, are the single largest source of sales tax revenue for almost every

state, county and local government, but those figures were down substantially

these days, according to a Los Angeles Times report Monday. Full story

U.S. manufacturing sector contracts

for 4th straight month

WASHINGTON, Dec. 1 (Chinese media) -- Economic activity in the

U.S. manufacturing sector failed to grow in November for the fourth consecutive

month, while the overall economy contracted for the second straight month, the

Institute for Supply Management (ISM) reported on Monday.

The ISM, a trade group based in Tempe, Arizona, said

its manufacturing index, which reflects the opinions of purchasing managers at

factories, plants and utilities, registered 36.2 last month, down from 38.9 in

October and lower than analysts' expectations of 38.4. Full story