U.S. stocks rally in first day of 2009

Special Report:Global Financial

Crisis

Visitors pose with the bronze sculpture of a bull near the New York Stock Exchange in New York, the United States, Jan. 2, 2009. U.S. stocks rose sharply in the first session of the new year on Friday, with the Dow Jones Industrial Average closing above 9,000 points for the first time since November. The Dow rose 258.30 points, or 2.94 percent to close at 9034.69. (Chinese media/Hou Jun)
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NEW YORK, Jan. 2 (Chinese media) -- U.S. stocks rose sharply in

the first session of the new year on Friday, with the Dow Jones Industrial

Average closing above 9,000 points for the first time since November.

The Dow rose 258.30 points, or 2.94 percent to close

at 9034.69.It was the second-best start of the year on a point basis, or the

sixth best start of the year on a percentage basis.

Traders work on the floor of the New

York Stock Exchange in New York January 2, 2009. U.S. stocks rose sharply

in the first session of the new year on Friday, with the Dow Jones

Industrial Average closing above 9,000 points for the first time since

November. (Chinese media/Reuters Photo)
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It's part of the classic holiday rally, analysts

said. Trade volume is very light, as many investors are still taking holiday and

waiting until Monday to start 2009 trading.

GM, the largest U.S. automaker, closed 14.06 percent

higher as it received 4 billion U.S. dollars in initial rescue loans from the

U.S. government.

Citigroup rose 6.41 percent, as its CEO and chairman

will forgo2008 bonuses. All the 30 Dow-component stocks ended higher.

A specialist works on the floor of the

New York Stock Exchange in New York Jan. 2, 2009. (Chinese media/Reuters

Photo)
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Gallery

Investors shrugged off a weak economic report that

showed U.S. manufacturing activity fell to its lowest level in 28 years in

December.

The Institute for Supply Management said its

manufacturing index fell to 32.4 in December from 36.2 in November. A reading

below 50 indicates contraction in the sector.

Broader indexes also moved significantly higher. The

Standard

Poor's 500 index rose 28.55 to close at 931.80; and

the Nasdaq advanced 55.18 to close at 1,632.21.

Crude prices rise as Middle East

tension continues, OPEC to cut

output

NEW YORK, Jan. 2

(Chinese media) -- Crude prices rose above 46 U.S. dollars a barrel Friday as the

Middle East tension continued while OPEC would carry out its largest production

cut.

Concerns that the conflict between Israel and Hamas in

Gaza could disrupt supplies in the Middle East continued boosting prices.

SP chief economist: U.S.

recession expected to hit bottom in

mid-2009

NEW YORK, Jan. 2

(Chinese media) -- The U.S. economy is already in recession for a year and is expected

to hit bottom in mid-2009, which would make it the longest recession since World

War II, Standard Poor's chief economist David Wyss said in a recent

interview with Chinese media.

"As we expected, the peak is dated to December 2007,

implying that the recession has already lasted longer than average," Wyss said

in an emailed reply.

U.S. auto makers receiving government

loan

CHICAGO, Jan. 1

(Chinese media) -- General Motors Corp. major auto maker in the U.S., collected a loan

of 4 billion dollars from the U.S. Treasury Department on the eve of the new

year, reports from Detroit said Thursday.

The cash infusion will prevent the automaker's imminent

financial collapse after a dramatic sales decline and cash crunch this year.