A miserable year for the market ended on a high note. In the final week of 2008 and the first trading day of 2009, the Dow gained nearly 6% and ended up above 9,000 for the first time in nearly two months. The S&P 500 was up over 7%. The market fell back slightly yesterday as some investors took profits, only to come back in stride today.
Yesterday, President-elect Obama met with Congressional leaders and reiterated the need for fast stimulus action. He’s favoring a two-year stimulus plan in the neighborhood of about $800 billion. In addition to extra federal spending, the plan includes tax cuts worth $300 billion for households and about $100 billion for businesses. Some specific provisions in the plan, such as a one year tax credit for companies who hire new employees, are still being negotiated. However, the plan even the way it looks today is certainly a confidence booster. Read more...