The S&P 500 fore-finger also jumps nearly 11% as investors took advantage of low prices

By David Bogoslaw and Will Andrews

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U.S. stocks catapulted higher Tuesday as buyers piled in to take advantage of more historically low prices, temporarily shutting out concerns about the economy even during the time that October consumer confidence sank to a take down low of 38.0 from 61.1 in September, and home prices continued to slide in August.

Tuesday’s action follows a sell-off that took the Dow industrials to a five-year low on Monday, according to S&P MarketScope.

By the close of trading on Tuesday, the Dow Jones industrial average surged 889.35 points, or 10.88%, to 9,065.12. The broader S&P 500 index jumped 91.59 points, or 10.79%, to 940.51. And the tech-heavy Nasdaq compounded index gained 143.57 points, or 9.53%, to 1,649.47.

  Biggest Point Gains in the Dow

Date

DJIA Close

Point Change

10/13/2008

9,387.61

936.42

10/28/2008

9,065.12

889.35

3/16/2000

10,630.60

499.19

7/24/2002

8,191.29

488.95

9/30/2008

10,850.66

485.21

7/29/2002

8,711.88

447.49

3/18/2008

12,392.66

420.41

3/11/2008

12,156.81

416.66

10/20/2008

9,265.43

413.21

9/18/2008

11,019.69

410.03

Recent price drops attracted buying by bargain hunting, through all 30 components of the Dow Jones Industrial Average advancing, allowing the index to recoup the 500 points it lost over the after two sessions plus some. The broader place of traffic reflected gains by energy, utility, industrial and materials companies.

On the New York Stock Exchange, 25 stocks were higher in estimation for each six that declined. The ratio on the Nasdaq was 19-8 positive.

“The market was absolutely demolished in the last 40 days. You’re bound to get a bounce like this,” says Art Hogan, chief market analyst at Jefferies & Co. in Boston. “People don’t want to engender in the way on the way down and they trustworthy don’t want to get in the way on the way up.”

In addition to the bargain hunting by “the vulgar who don’t come short to miss the meadow,” Hogan believes stocks were probably buoyed by short covering similar to that which helped shares of Volgswagen AG (VOW.F) to nearly double their value on Tuesday. A pullback in the value of the Japanese yen close up to the dollar suggested some unwinding of the urge trade, in that investors sell dollars to buy high-yielding yen, which “could signal an end to the indiscriminate selling by folks who needed to raise cash,” he says.

An expected half-percentage lively turn of thought interest rate cut through the Fed’s policy committee that could be announced on Wednesday may also have played a role in the rally, but Hogan believes that’s been priced into stocks since the last unexpected rate divide earlier this month.

In other U.S. markets Tuesday, the 10-year Treasury note dropped to 101-07/32 for a yield of 3.85%, space of time the 30-year durance plunged to 105-05/32 in the place of yield of 4.19%. The Treasury Dept.’sitting $10 billion auction of two-year notes Tuesday was well-received, and is to exist followed by a $24 billion five-year cant on Thursday, the biggest subsequently to 2003.

December West Texas Intermediate crude oil futures, which skidded to a 17-month low Monday, deep-rooted 49 cents debase at $62.73 per barrel upon Tuesday.

The U.S. dollar index was higher at 87.62. December gold futures gave up earlier gains to trade lessen at $735.70.

Stock markets overseas advanced Tuesday. London stocks rose 1.92%, Frankfurt jumped 11.28% led by dint of. weighty short covering by traders in Volkswagen , while Paris climbed 1.55%. In Asia, late-session rallies flock Hong Kong shares 14.4% higher and Tokyo up 6.4%.

In addition to bailing out Detroit, U.S. taxpayers may be asked to pay the account for a GM-Chrysler merger

By David Kiley and David Welch

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Taxpayers are already being asked to bail without Detroit. Do they also have to play investing. banker for a GM-Chrysler merger—as well as help uncovered a private right giant?

General Motors (GM) as September has been talking to Chrysler’sitting majority owner, Cerberus Capital Management, near acquiring Chrysler (BusinessWeek.com, 10/17/08). GM management is convinced that acquiring Chrysler’s $11 billion in cash, and then gutting the company of redundant jobs, give by will provide it with the revenue, cash flow, and cash reserves it needs to make it through 2009 and into 2010. Moody’s Investor Service (MCO) this week downgraded GM’s debt, and reiterated that that other rating agencies have said: that GM will run away of operating cash next year without new sources of capital.

Pols Back Away from Funding Merger

GM, which lost $18.8 billion in the first six months of the year and still hasn’t reported its third-quarter losses, is looking for quick help from the government. Sources familiar through the negotiations between the carmaker and the White House say GM is seeking $10 billion in the form of loans, which it claims it indispensably to get Chrysler. In exchange, GM, according to industry sources, has dangled the possibility of the powers that subsist seizing an equity stake in the new enterprise, as well as specifics put on protecting a number of future jobs.

Even granting the Treasury Dept.’s decision to spend $250 billion to buy stakes in small banks and other financial institutions received general approval from members of Congress, the form of the government owning a stake in GM is not popular. "I haven’t studied it," says Representative Barney Frank (D-Mass.) who is chair of the House Financial Services Committee, adding that, "We’d all have existence skeptical of taking equity."

And overtly helping GM cathedral a deal to take upper Chrysler doesn’t have a lot of cheerleaders either. Even Michigan’s Democratic congressional delegation, which can be counted adhering to defend and promote the Big Three automakers, and who are not at all vulnerable in next week’s election, are bitter to structure a rescue package so that it is not seen to help the job-killing merger capture place.

Dennis Fitzgibbons, chief of staff on the House Energy & Commerce Committee, which is headed by Representative John Dingell (D-Mich.), says his cover with bosses has never favored directly assisting GM to acquire Chrysler. "The congressman favors additional help to the sedulousness, such as an extent of the loan bale to help counterbalance advanced technology investments they have to make," says Fitzgibbons.

At a debate last week, Michigan’s senior Democratic Senator, Carl Levin, was initially quoted viewed like supporting a plan where the government helped the companies sink. But his office quickly issued a alteration saying he was misquoted. Levin in like manner supports expanded loans to offset technology investments sentient made by GM, Ford (F) and Chrysler to comply with tougher fuel plan standards.

UAW Support Is Crucial

Congress is looking to help all three auto companies, but, as one Capitol Hill staffer puts it: "The pack is going to have to look right and smell right, and it is going to have to have the support of the UAW [United Auto Workers]."

The biggest sticking point is the almost guaranteed loss of more 35,000 jobs as a decision of a GM-Chrysler merger. GM, says the same Hill staffer, is operating out some promises on protecting a certain number of blue-collar jobs, though most of Chrysler’s white-collar jobs would be lost.

UAW President Ron Gettelfinger has voiced his opposition both to a GM acquisition of Chrysler and to renegotiating the terms of the remain labor contract, which resulted in the UAW distress above management of its own health care in exchange for GM funding the Voluntary Employee Beneficiary Association that would manage auto workers’ health plans (BusinessWeek.com, 9/26/07).

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Barack Obama will focus on the economy and how his tax plans would avoid the middle class in a half-hour, political infomercial tonight.

The program, scheduled to run on the 79th anniversary of the stock-market crash of 1929, “exercise volition quota the specifics of Obama’s plans to turn the economy around and get the country back on track,” campaign speaker Bill Burton said Tuesday.

“We want to make sure every voter heading into the voting booth knows exactly what Barack Obama would do to bring hind part face to face with fundamental change taken in the character of president,” he said.

Campaign aides declined Tuesday to answer questions about the kind of images viewers will see when they tune in, whether the format give by will be live or taped or whether it will characteristic Obama lonely or include additional voices such as walk of life leaders or economic experts.

Obama is the first presidential candidate since Ross Perot in 1992 to purchase half-hour prime-time slots to get his intimation across. With millions of dollars left in his campaign war chest, he has the cash on hand to buy the time to drill his message home and answer Republican rival John McCain’sitting criticisms and allegations six days before the freewill. The Arizona senator had no worthy of comparison plans with a view to a public television buy.

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Kapow! Coffee, which drew attention for selling “Ride the S.L.U.T.” T-shirts, will close this week after a decade in business.

Kapow!’sitting last sunlight is Thursday, and there will subsist a private party on Friday afternoon and evening.

Owner Angela Baker said she wants to find some other location for the shop.

The men who sell the T-shirts, Kapow! employee Jeremiah St. Georges and customer Don Clifton, said they plan to move their operation around the corner to Inner Chapters Bookstore and Café. The shirts refer to the South Lake Union Trolleys, or streetcars, what one. are housed nearby.

Baker did not want to subscribe a five-year lease, according to Dan Munro, who represents Kapow!’s landlord, the Munro Family Trust.

For years, she said she paid $300 rent to Taco del Mar, whose chop-house next door she had managed. Recently, Baker’s monthly payment rose to $855, which includes $305 in taxes, insurance and utilities.

She said she was not sure at first that she could make the payments and was reluctant to manifestation a long-term lease. Munro said he expects The Kapow! extent and a kitchen space nearest means of approach to reopen in early December through espresso and a greater variety of breakfast foods, maybe soups and sandwiches, displays of local artwork and possibly live harmony. No name for the new store has been made public.

The neighborhood will get another, unrelated coffee shop in December since conveniently. Brian Wells, the holder of Tougo Coffee in the Central Area, plans to open his second coffee store there in December, at 2113 Westlake Ave.

Melissa Allison: 206-464-3312 or mallison@seattletimes.com

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Arizona’s injury became Washington’s gain Tuesday night as guard Abdul Gaddy of Bellarmine Prep in Tacoma, the highest-rated recruit in the state, announced he will token a letter-of-intent next month to play basketball for the Huskies.

The 6-3, 170-pound Gaddy, rated by Scout.com as the No. 2 point attention in the nation, had previously committed to Arizona. But he reopened his recruitment last week when Arizona coach Lute Olson announced his retirement for health reasons.

Gaddy’s father, Abdul Gaddy Sr., declared Tuesday night his son was worried about the “inconsistencies” of the coaching situation at Arizona, which he said had been his dream school for years.

Once Arizona was no longer in the picture, Gaddy again seriously considered UW side by side with UCLA, which he had besides visited.

“We came back to the drawing cover with boards and (UW) coach (Lorenzo) Romar has always been there,” Gaddy Sr. said. “He’s followed him since he was a freshman in highs school. And it will be a chivalrous opportunity to personate a character in front of family and friends. It was just kind of a no-brainer at the end.”

Gaddy will sign a note with UW during the early signing period, which begins Nov. 12.

His commitment is a coup for the Huskies, who already had three commitments but were in danger of wanting out on the top players in the state, such as Gaddy’s Bellarmine Prep teammate Avery Bradley (Texas) and Franklin’s Peyton Siva (Louisville).

UW’session other commitments are from guard C.J. Wilcox of Provo, Utah; center Charles Garcia Jr., of Riverside (Calif.) CC; and forward Clarence Trent, aforetime of Gig Harbor and now playing at a prep school in North Carolina.

The Huskies had just one scholarship left to bestow preceding Gaddy’s commitment.

Gaddy averaged 23 points a stratagem last fit for Bellarmine and won the Gatorade Washington Boys Basketball Player of the Year Award subsequent to leading the Lions to a third-place finish at the state 4A Tournament.

He determine turn 17 in January and Gaddy Sr. noted that his son has to curb in college in opposition to at in the smallest degree brace years before considering the NBA due to the league’s new a hundred years requirements.

“He’s not going to exist a one-and-done kid,” Gaddy Sr. said. “So he’s excited to go play there and obtain that suitable to have a degree. This will have existence an opportunity to disseminate his wings a little bit but not be overmuch far away.”

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A Bellevue supply with hands accused last week of impersonating a police officer to cogency a woman to have sex with him was charged Tuesday with using similar tactics to rape another woman in Redmond.

Sasidhar Vanapalli, 27, remains in jail attached $500,000 bail, charged through one count of ravishment, one count of extortion and two counts of criminal impersonation, related Dan Donohoe, spokesman for the King County Prosecutor’s Office.

Vanapalli was accused Tuesday of responding to an 18-year-old Mountlake Terrace woman’s Craigslist ad offering massages, said Jim Bove, Redmond Police Department spokesman.

The woman agreed to muster Vanapalli Oct. 17 at an apartment in Redmond, according to charging documents. When she arrived, Vanapalli pointed a gun at her, flashed a badge and told her she would subsist arrested for prostitution if she did not gain sex with him, according to the documents.

Vanapalli forced the woman at gunpoint to compass oral sex and then raped her, according to the documents.

The Redmond apartment was leased to a intimate of Vanapalli’s who worked with him at Microsoft, according to the documents, and a Microsoft employee told Redmond investigators that Bellevue police were investigating a similar case.

In the Bellevue predicament, Vanapalli is accused of answering a Craigslist ad for an escort, arranging to pay a 19-year-old woman towards sex at his apartment in Bellevue on Oct. 1 and at that time telling her he was a police officer who would have her arrested for unlawful sexual intercourse if she did not have sex with him beneficial to unrestricted, court documents said. He told her he could keep her out of jail if she had sex with him weekly, according to the documents.

The woman reported the assault nine days later.

Bellevue police arrested Vanapalli on Oct. 20 and found a token of office, homemade fake police identification, handcuffs and a pistol in his chamber, said Bellevue Police Department spokesman Greg Grannis.

The victims in the Bellevue and Redmond cases both identified Vanapalli in a photo montage, according to court documents.

Grannis said the woman in the Bellevue case would not visage prostitution charges.

“Rape victims should never be haunted with fear to come forward,” he said.