U.S. Stocks Rally in First Day of 2009

    Investors shrugged off a weak economic report that showed U.S. manufacturing activity fell to its lowest level in 28 years in December.

    The Institute for Supply Management said its manufacturing index fell to 32.4 in December from 36.2 in November. A reading below 50 indicates contraction in the sector.

    Broader indexes also moved significantly higher. The Standard

    Poor's 500 index rose 28.55 to close at 931.80; and the Nasdaq advanced 55.18 to close at 1,632.21.

Crude prices rise as Middle East tension continues, OPEC to cut output 

    NEW YORK, Jan. 2 (Xinhua) -- Crude prices rose above 46 U.S. dollars a barrel Friday as the Middle East tension continued while OPEC would carry out its largest production cut.

    Concerns that the conflict between Israel and Hamas in Gaza could disrupt supplies in the Middle East continued boosting prices.

S&P chief economist: U.S. recession expected to hit bottom in mid-2009 

    NEW YORK, Jan. 2 (Xinhua) -- The U.S. economy is already in recession for a year and is expected to hit bottom in mid-2009, which would make it the longest recession since World War II, Standard & Poor's chief economist David Wyss said in a recent interview with Xinhua.

    "As we expected, the peak is dated to December 2007, implying that the recession has already lasted longer than average," Wyss said in an emailed reply.

U.S. auto makers receiving government loan 

    CHICAGO, Jan. 1 (Xinhua) -- General Motors Corp. major auto maker in the U.S., collected a loan of 4 billion dollars from the U.S. Treasury Department on the eve of the new year, reports from Detroit said Thursday.

    The cash infusion will prevent the automaker's imminent financial collapse after a dramatic sales decline and cash crunch this year.