Stocks Higher On Hopes Bailout Plan Will Be Passed Soon

Stocks are higher mid-day on hopes the financial bailout plan could be approved by Congress as soon as today. Following two days of uncertainty about the plan's passage, significant progress is now being made. Last night, President Bust address the nation to gain support for the plan.

At noon, the Dow was 215 points, the Nasdaq gained 35 and the S&P 500 added 23 points.

Investors are ignoring more negative data on the economic front today, including new home sales data which fell 11.5% to a 17-year low of 460,000. In addition, Durable Goods Orders fell 4.5%, which was much weaker than the expected 1.9% drop. The drop in Durable Goods Orders is being blamed on the ongoing credit crunch, as the Wall Street problems spread to Main Street.

Major Dow component GE (NYSE: GE) lowered its earnings guidance today, citing the unprecedented weakness and volatility in the financial services markets. Surprisingly, after opening lower, shares of GE have rallied back and are currently trading up 3.4% to $25.43.

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