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The politicians in Washington have made some progress today and agreed on the stimulus bill. Wall Street has basically moved with every little bit of news coming out of Washington dealing with the bill. The bill could mean millions of new jobs and funding for projects.

Investors have been eager for any signals that the economy is set to recover. Supporters hope the bill’s mix of spending and tax cuts will increase consumer spending, which accounts for more than two-thirds of U.S. economic activity.

But investors are still cautious. Wednesday’s 51-point rise in the Dow is “not a strong statement here,” said Kim Caughey, equity research analyst at Fort Pitt Capital Group. “More information is what we need. What I mean by that is what exactly has been agreed to with the stimulus plan.”

And Wall Street remains nervous about how, exactly, Geithner’s financial rescue plan will work out: how it will assess the banks, how it will price their bad assets, and how it will recreate a market for those assets.

Investors “reacted to bad news yesterday. There wasn’t more bad news today,” Caughey said. “People didn’t have a good sleep and say ‘Whew, was I wrong yesterday.’”

The Dow Jones industrial average rose 50.65, or 0.64 percent, to 7,939.53.

I think investors aren’t the only ones looking for a signal for recovery, everyone is.
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Jeremy

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