NEW YORK — Investors are waiting for Washington to make the next move.
Stocks ended a quiet session with only modest changes Monday as Wall Street sought details of how the government will reshape a rescue plan for the financial industry. Investors are also watching as political leaders scramble to put together an economic-stimulus program.
The market is awaiting a speech today by Treasury Secretary Timothy Geithner outlining President Barack Oba ma’s plan to overhaul the government’s $700 billion financial-bailout package.
Congress passed the measure last fall as the credit markets began to seize up on fears about rising levels of bad debt. Geithner had been scheduled to announce the plan Monday, but the White House pushed back the speech to focus on the stimulus bill.
The Senate is expected to pass an $827 billion stimulus bill today. The government, however, still faces the challenge of reconciling the Senate bill with the House’s $819 billion version that passed earlier. Republicans and Democrats have been at odds over the plan, which is designed to help pull the economy out of the worst recession in decades.
The Obama administration is still pressing to have the stimulus measure on the president’s desk for signing by the middle of this month.
Also, Federal Reserve Chairman Ben Bernanke is expected to testify today at a House Financial Services Committee hearing on the central bank’s efforts to revive lending during the financial crisis.
Investors were hesitant to make big moves with so much news expected from Washington in the coming days.
“We saw a lot of buying ahead of the announcements,” said Chris Johnson, president of Johnson Research Group. “Investors are simply biding their time to see if those expectations are going to be met.”
The Dow Jones industrial average fell 9.72, or 0.12 percent, to 8,270.87. The blue chips fluctuated between gains and losses 49 times during the session.
Broader stock indicators were mixed after a big rally last week. The Standard & Poor’s 500 index rose 1.29, or 0.15 percent, to 869.89, and the Nasdaq composite index slipped 0.15, or 0.01 percent, to 1,591.56.
“Given that we had a good two-day rally and a strong performance last week, it’s not surprising that we would see some softness,” said Alan Gayle, senior investment strategist at RidgeWorth Investments. “There is a tug of war between the problems that we know are in front of us and the promise that is expected between the bank-rescue package and the stimulus plan.”
