Stocks, ETFs Reverse Course After Bailout Agreement Reached
September 25th at 2:00pm by Tom Lydon
Stocks and exchange traded funds (ETFs) reversed three days of losses today after lawmakers agreed on an outline for a bailout plan.
But while stocks rose, credit markets are still nervous, says Tim Paradis for the Associated Press. This is evidenced by the fact that demand for safe, short-term Treasuries is still high.
The plan will go to President Bush, and a vote by bouth houses of Congress should take place within days.
The package includes limits on pay packages for the executives of firms that seek help, and a mechanism for the government to take an equity stake in some firms so that taxpayers can profit if the plan works, reports David M. Herszenhorn for the New York Times.
Among the top-performing unleveraged funds today include:
- E-TRACS UBS Bloomberg CMCI Agriculture ETN (UAG), down 6.1% since its April 4 inception
- PowerShares Preferred (PGX), down 32.5% since its Feb. 1 inception
- Market Vectors Russia (RSX), down 33.8% year-to-date
