YAHOO [BRIEFING.COM] : The stock market regained about 40% of yesterday's massive 8.9% sell-off. Stocks were in positive ground after General Electric (GE 17.61, +2.11) gave a better-than-feared business update and then surged to session highs in the final minutes of trade after General Motors (GM 4.85, +0.26) outlined its plan for government aid.

The S&P 500 rose 4.0% in a volatile session, with all ten sectors posting a gain. Volume was slightly above average and on pace with Monday's level.

General Motors and Ford outlined to Congress how the automakers would use $25 billion in loans from the government. Ford asked for a $9 billion loan, saying it will focus on more fuel efficient vehicles and downsize its dealer-base, among other initiatives, to reach at least breakeven by 2011. GM requested $12 billion in government term loans and a $6 billion line of credit in case the downturn persists. GM plans to start repaying the loans as early as 2011.

November U.S. auto sales results were dismal. On year-over-year basis, sales plunged 41% at GM, 31% at Ford, 47% at Chrysler and 34% at Toyota (TM 62.00, +3.44).

General Electric was the best-performing stock. The conglomerate said it expects fourth quarter earnings on the low end of its previous guidance, but this was better than many analysts had expected. GE also said it will keep its dividend unchanged in 2009. At Monday's closing price, GE's dividend represented a hefty yield of 8%.

The financial sector (+7.9%) outperformed following its 17% plunge in the previous session. Goldman Sachs (GS 65.10, -0.66), however, was a notable underperformer. The Wall Street Journal reported that Goldman is likely to report a net loss of as much as $2 billion in its later quarter, which would be five times worse than the consensus estimate.

In earnings news, Sears Holdings (SHLD 36.03, +4.19) and Beazer Homes (BZH 1.37, -0.13) posted larger-than-expected third quarter losses. Staples (SPLS 16.32, +1.20) reported a slightly higher-than-expected profit.

Separately, The Federal Reserve said due to the strains in the financial markets it will extend three liquidity facilities through April 30, 2009. The facilities aim to increase liquidity for asset backed commercial paper and financial firms.

Despite the gains in stocks, Treasuries advanced as investors speculated that the Federal Reserve will buy longer-term Treasuries. The 10-year note rose 15 ticks to send its yield down to 2.67%.

Oil prices had a volatile session, eventually falling 3.8% to $47.42, which is the lowest level since May 2005.DJ30 +270.00 NASDAQ +51.73 NQ100 +3.6% R2K +5.9% SP400 +4.8% SP500 +32.60 NASDAQ Adv/Vol/Dec 1972/2.11 bln/776 NYSE Adv/Vol/Dec 2398/1.62 bln/749