Associated Press Stocks end higher on agreement on stimulus bill

Stocks end moderately higher as lawmakers announce deal on $789 bln economic stimulus bill
Tim Paradis, AP Business Writers, Wednesday February 11, 2009, 4:44 pm EST

NEW YORK (AP) -- Investors shuttled between optimism and pessimism Wednesday, finally betting that the government might help the economy out of recession after all. News in late afternoon that key lawmakers agreed on a $789 billion economic stimulus plan sent stocks moderately higher. The advance, which came in a back-and-forth session, came a day after stocks plunged on worries about the government's financial industry bailout plan.

The stimulus measure includes provisions for unemployment benefits, food stamps, health coverage and more. It also includes billions for states facing yawning budget gaps.

Investors have been eager for any signals that the economy could begin 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. Spending has stalled since the mid-September bankruptcy of Lehman Brothers Holdings Inc. froze credit markets and deepened the recession. more...