YAHOO [BRIEFING.COM] : The stock market kicked off the week on a strong note after investors were pleased with news that President-elect Obama plans to launch the largest infrastructure investment program in 50 years and word that progress is being made on a financial relief package for U.S. automakers.

Obama said over the weekend that he will focus on making sure an economic stimulus is large enough to get the economy moving, noting that he can't worry about the fiscal deficit in the short term. Obama said he aims to create a least 2.5 million new jobs by 2011 and launch the largest U.S. infrastructure investment since the 1950s.

Ford (F 3.32, +0.60) and General Motors (GM 4.81, +0.73) rallied on reports that the government was making progress on a bailout package. Late in the session, it was reported that U.S. Democrats had sent a $15 billion rescue plan to the White House for consideration.

In corporate news, more job cuts were announced due as the poor economic environment takes a toll. 3M (MMM 57.38, -2.47) issued downside earnings guidance for fiscal year 2008 and 2009 and said it will cut 1,800 jobs in the fourth quarter. Dow Chemical (DOW 20.41, +1.41) plans to lay off 11% of its global full-time workforce, or 5,000 positions, close 20 facilities and reduce its contractor workforce by 6,000.

Privately-held Tribune Company filed for Chapter 11 bankruptcy protection. The weak economic environment combined with a high amount of debt proved to be too much for the Chicago-based company. The Tribune Company will continue to operate its media business as it restructures. The Chicago Cubs franchise, including Wrigley Field, is not part of the Chapter 11 filing.

On a positive note, McDonald's (MCD 60.89, -1.83) reported another solid month of sales as consumers flock to the fast food giant's relatively inexpensive offerings. November comparable sales increased 7.7% worldwide and 4.5% in the U.S.

All of the ten sectors posted a gain. Defensive sectors such as consumer staples (+0.1%), utulities (+0.8%) and healthcare (+1.1%) underperformed on a relative basis.

Cyclical sectors materials (+7.7%) and energy (+5.7%) saw the most buying interest, benefiting from Obama's potential stimulus plan and a spike in commodity prices. The financial sector (+6.9%) also outperformed as investors showed an increase willingness to take on risk.

Overseas markets rallied on news of the potential U.S. stimulus and on reports that other countries are considering stimulus packages of their own. The DJ Euro Stoxx 50 rose 8.8% and the MSCI Asia Index rose 7.9%.

The strength in world equity markets and a steep 1.8% drop in the dollar sparked buying interest in commodities (+5.2%). Oil rose 7.9% to $44.05 per barrel.

In the end, the S&P 500 rose 3.8% in volume that was modestly above average. The index has posted a gain in nine of the last ten sessions and is up 22.8% from its multi-year low reached on Nov. 21.DJ30 +298.76 NASDAQ +62.43 NQ100 +4.0% R2K +4.4% SP400 +3.8% SP500 +33.63 NASDAQ Dec/Adv/Vol 779/1991/2.32 bln NYSE Dec/Adv/Vol 686/2467/1.74 bln