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U.S. markets edge up

NEW YORK, Dec. 10 (UPI) -- U.S. markets climbed modestly Wednesday morning as lawmakers in Washington indicated a vote on a bailout for U.S. automakers was imminent.

In late-morning trading, the Dow Jones industrial average climbed 150.45 points or 1.73 percent to 8,841.78. The Standard & Poor's 500 gained 16.36 or 1.84 percent to 905.03. The Nasdaq composite index gained 31.84 or 2.06 percent to 1,579.18.

The benchmark 10-year U.S. Treasury bond fell 26/32 to yield 2.68 percent.

The dollar was mixed. The euro rose to $1.3017, compared to Tuesday's $1.2929. Against the Japanese yen, the dollar rose to 92.905 yen, up from Tuesday's 92.12 yen.

In Tokyo, the Nikkei average gained 264.37 points to 8,660.24, up 3.15 percent.

House sets vote on automaker loans

WASHINGTON, Dec. 10 (UPI) -- An emergency loan to help U.S. automakers would come with strict guidelines to ensure they make progress towards profitability, a Washington official said.

The White House and congressional Democrats Tuesday agreed "in concept" to provide $15 billion to automakers as early as next week. The measure is scheduled for a vote in the House today, The Washington Post reported.

The bill requires President George Bush to name a "car czar" to ensure Detroit's Big Three take steps to restructure debt, trim operating costs and obtain concessions from the United Auto Workers labor union by March 31. By then, the companies are to report a "positive net present value" or they would be cut off from further federal assistance, the Post said.

The car czar would be mandated to revoke the loan and help the car companies find other options, including bankruptcy, if they do not report progress toward long-term survival.

A positive vote is not guaranteed. "There's a lot of skepticism," said Rep. C.A. Dutch Ruppersberger, D-Md. "But people realize, for our auto industry to go into bankruptcy, I don't know if the markets could stand it."

Buyers flock to zero-yield Treasury bills

WASHINGTON, Dec. 10 (UPI) -- U.S. Treasury debt with zero and negative yields is finding buyers -- a tangible measure of the current level of discomfort with corporate equity stocks.

A $30 billion Treasury auction Tuesday included four-week securities that offered zero returns and, briefly, three-month securities with negative yields, The New York Times reported.

The demand at the Treasury auction exceeded supply, the Times said.

"The last time this happened was the Great Depression, when people are willing to accept no return on their money, or possibly even a negative return," Edward Yardeni, an independent analyst, told the Times.

"It's not a good sign," he said.

The surge in demand for government debt began when short-term money markets froze in September when the Reserve Primary Fund collapsed in part due to money invested in Lehman Brothers, the Times said.

Since then, $200 billion has been invested in funds that buy only Treasury bills, iMoney.Net reported.

Use of online coupons soaring

WASHINGTON, Dec. 10 (UPI) -- U.S. online coupon services are getting a boost from the economic downturn, with a 22 percent rise in their use from this time in 2007, research shows.

An analysis by Simmons Market Research Bureau indicates 38.6 million American consumers will use online coupons this winter, with online services such as Coupons.com, RetailMeNot.com and CoolSavings.com being the biggest winners, USA Today reported Wednesday.

"With the holidays here, the economy slumping, consumer confidence down and headlines screaming layoffs, we're seeing coupon clicks soar," Steven Boal, who heads of Coupons Inc., told the newspaper. His company is the world's largest Internet coupon distributor, boasting such clients as General Mills, Kraft Foods and Pillsbury.

Boal said Coupons.com has doled out $50 million in savings via coupons printed from its Web site last month, more than double May's total, with online shoppers saving an average of $40 to $50 per week, or $200 per month.