Stocks Mixed on Friday Awaiting Bailout Package
U.S. stocks ended mixed Friday after the Bush administration’s proposal for a $700 billion banking bailout ran into opposition from Republican lawmakers, with big financial companies lifting the Dow Jones industrials more than 120 points, but worries about smaller banks and parts of the technology sector taking much of the market lower.
President Bush told Congress Friday it must “rise to the occasion” and pass legislation bailing out the struggling financial system, and new bargaining was arranged at the Capitol despite heavy bickering, especially within the Republican caucus.
GOP lawmakers are concerned about the cost of the proposal, and they balked at the plan after congressional leaders said Thursday they had reached an agreement in principle. Shortly after Friday’s opening bell on Wall Street, President Bush said at the White House lawmakers can express doubts but ultimately should “rise to the occasion” and approve a plan to stave off what he sees as an economic calamity.
After dropping more than 125 points at the start, the Dow Jones Industrial Average pulled off its lows to rally late in the day, gaining 121.07, or 1.10 percent, to 11,143.13. Broader indicators were mixed. The Standard & Poor’s 500 index rose 4.09, or 0.34 percent, to 1,213.27, and the technology-heavy Nasdaq composite index fell 3.23, or 0.15 percent, to 2,183.34.
