Market Wrap-Up

The battle over an automobile industry bailout heated up Wednesday as Democrats and the White House tried to reach a compromise with Congressional Republicans who feel the $15 billion plan doesn't go far enough toward making the sector more viable for the future. Stocks rose in early morning trading when it appeared the plan had a green light for approval. But at midday several Republicans held a press conference to say they wouldn't cast a yea vote. The Dow Jones Industrial Average had been up as much as 180-plus points. The uncertainty surrounding the bill shrank that gain, bringing the Dow back to even territory before a small rally at the close. The benchmark finished up 70 points to close at 8,761.

Also weighing on trading was anecdotal news about the state of the economy. Bloomberg reported a slump in consumer spending that hadn't been seen since 1942, which could lead to more job losses and extend the recession. If that is, indeed, the case, that means another year of dismal news, at least according to a recent survey. Duke University polled 1,275 chief financial officers and found they expect the recession to last another 12 months.

The Department of Energy announced a rise in weekly oil inventories. Usually that kind of news would keep crude flat or even cause the price to drop. Nevertheless, traders jumped into oil betting a Detroit bailout would lead to a rebound in that industry. But that rally was muffled a bit when traders became skeptical a plan would pass. Crude was up over 6% at one point but finished the session at the $44 level.

Winners

While the price of oil may have cooled off during the session, the energy sector didn't follow the same path. The SPDR S&P Oil & Gas Exploration & Production fund (XOP) gained 7.8%. The Market Vectors Coal fund (KOL) climbed 11.5%.

Losers

XL Capital (XL), the large insurance outfit, has evidently hired Goldman Sachs (GS) to find a buyer for the company after it announced larger-than-expected losses. That bad news caused a rush out of the insurance sector. The iShares Dow Jones U.S. Insurance ETF (IAK) was flat on the day after being down as much as 1.5%.

Thursday's Notebook

Earnings & Conference Calls
Ciena Corp., Costco, Gildan Activewear, Global Crossing, Krispy Kreme

Economic Data
8:30a.m. Initial Jobless Claims
8:30a.m. Oct. Trade Balance
8:30a.m. Nov. Import Prices
10:00a.m. DJ-BTMU Business Barometer

Quick Take

A look at how the industry's most popular ETFs did on Wednesday.