US stocks ticked higher on Wednesday after a deal was reached on an economic-stimulus package, though some energy and commodity stocks were weak as economic reports underscored the need for stimulus.
The International Energy Agency said US oil demand in December slid more than 6%, hurting the price of oil. Also Wednesday, markets digested reports showing that imports to and exports from both China and the US – the twin engines of the global economy – fell sharply. Stocks dipped midsession, but bounced after Sen. Harry Reid, Democrat of Nevada said Wednesday that a deal had been reached on a $789bn economic stimulus bill, adding that the Senate could vote on as soon as Thursday.
The Dow Jones Industrial Average, which slid 382 points in the previous session due largely to uncertainty about the Treasury Department’s unveiling of a rough plan to buy toxic credit bets from banks, was up 50.65 points (0.64%) to 7,939.53.
Banks regained some of their Tuesday losses even as executives were put on the hot seat in Congress: Bank of America was up 7.7% to $5.99 and Citigroup was up 7.5% to $3.60. The S&P 500 rose 6.58 points (0.80%) 833.74.
Bank stocks have plummeted since late last year despite a series of major steps by federal officials, with traders seemingly uneasy about anything that comes out of Washington.
While credit markets have improved from their late-2008 unprecedented freezing, equities are only narrowly higher than their low points of that year. Increasingly it appears equity investors are getting out of stocks completely and cautiously pushing into other asset classes with any funds they take from the sidelines.
Among other asset classes, Treasuries and gold futures were rallying and the dollar was gaining against the euro.
The NASDAQ ended 5.77 points (0.38%) higher at 1,530.50, though it was hurt by an 18% fall to $46.88 for shares of BlackBerry maker Research In Motion, which had been one of the tech stocks that held up best through the market’s downdraft in recent months.
Also hurting the Nasdaq was a slide for transportation stocks including airlines, truckers and even railroad companies. Among the biggest decliners was JB Hunt, down 6.6% to $22.79. While a rise in oil prices played a role in the weakness, a flood of notes have come in from analysts in recent weakness disparaging many in the transportation sector.
In economic news, Treasury Secretary Timothy Geithner told a Senate panel that the US financial system faces unprecedented challenges that require new and aggressive programs to help solve the ongoing crisis.

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