June 1, 2009

U.S. markets ignore GM bankruptcy

U.S. markets headed up Monday morning in spite of General Motors Corp. filing for bankruptcy and oil prices reaching a seven-month high.

GM filed for creditor protection in New York Monday. The plan includes an additional $30 billion in federal funds, closing 12 to 20 factories, and cutting 21,000 union jobs. The government, in the plan, will wind up with 60 percent of the ailing automaker.

Crude oil prices topped $68 per barrel over the weekend, settling to $67.46 per barrel Monday.

In midmorning trading, the Dow Jones industrial average gained 193.55 points, or 2.28 percent, to 8,693.88. The Standard & Poor's 500 rose 2.54 percent, 23.33 points, to 941.68. The Nasdaq composite index added 47.75 points, 2.69 percent, to 1,822.08.

The benchmark 10-year U.S. Treasury bond fell 1 19/32 to yield 3.655 percent.

The euro rose to $1.4186, compared to Friday's $1.414. Against the Japanese yen, the dollar rose to 96.31 yen, compared to Friday's 95.27 yen.

In Tokyo, the Nikkei average gained 155.25 points to 9,677.75 , up 1.63 percent.