Stocks Rise On News Of Infrastructure Plan

(AP) Wall Street extended its rally to a second session Monday as investors grew optimistic that President-elect Barack Obama's plan to dramatically ramp up infrastructure spending could help boost the crippled economy. All the major indexes advanced more than 2.5 percent, including the Dow Jones industrial average, which gained more than 230 points.

Obama announced plans over the weekend for the largest U.S. public works spending program since the creation of the interstate highway system a half-century ago. That could bolster the economy by putting thousands of people to work building schools and other construction projects.

That helped to give a lift to a range of companies, from machinery makers to materials producers. Alcoa Inc., the world's biggest aluminum producer, surged 17 percent on the news; while heavy-equipment maker Caterpillar Inc. jumped 12 percent.

Investors also grew more confident that the government was near a deal to dole out billions to America's three biggest automakers. The White House said Monday that it was "very likely" to strike an agreement with Congress on funneling money to General Motors Corp., Chrysler LLC and Ford Motor Co. The package is expected to total about $15 billion.


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