Lawmakers reached a deal on a $789 million stimulus bill and set the stage for quick passage. Sentiment is mixed. Government spending is important to stimulate growth but many say pork spending will dull the bill's economic effectiveness. A reminder of what's ahead was offered by the Treasury's monthly budget statement where deficits are already dwarfing any thing ever seen before.
Stocks regained little following yesterday's disappointment over lack of details in the Treasury's stability plan. The Dow industrials edged 0.6% higher while the dollar was little changed at $1.2897 against the euro. Money keeps moving back into Treasuries and gold with the 10-year yield down 5 basis points at 2.76 percent and gold ending more than $25 higher at $941.10. Another bulge in supplies sent oil down more than $2 to $36, yet gasoline went higher, briefly over $1.30 in reaction to draws in gasoline stocks.