Higher on GM news

Small-cap stocks pushed higher in early trading, lifted by news that General Motors Corp. (NYSE:GM) will receive an additional $6 billion in rescue funds, including a $5-billion stake in the financing arm, GMAC. In other developments, a better-than-feared reading on Midwest manufacturing helped soothe the pain from a weak consumer confidence figure. At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was up 4.28, or 0.92% at 470.44.

The GM news appeared to trigger a ripple bullish effect in overseas trading that carried over into the start of U.S. equities action today. Under the latest addition, GM’s financing arm will receive $5 billion and will expand its lending operations. Back in October, GMAC restricted loans to customers with credit scores below 620 in line with the deepening credit crisis. GM also will get an additional $1 billion on top of the $13.4 billion announced on December 19. GM stock was up 9% early this morning, while Ford Motor Co. (NYSE:F) was up 2.7%.

The Case-Shiller Home Price Index came in at minus 18% in October vs. year-ago levels, which reflects a record annual price decline. The house price index is now off 25% from the 2006 peak as the housing market continues to sink. Stock index futures appeared to pull back a little bit after the home price report came out, but this is data for October and it’s almost January, so the data is dated, to say the least.

The Chicago Purchasing Manager’s Survey came in at 34.1, which was better than ...

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