By Nick Godt, MarketWatch NEW YORK (MarketWatch) -- U.S. stocks saw early gains accelerate Tuesday, a day after the Dow Jones Industrial Average recorded its fourth-biggest point drop on record, as investors turned to prospects for a bailout of the ailing auto industry. "We're seeing extreme amounts of volatility, which is what we have at major turning points in the market," said Paul Mendelsohn, chief investment strategist at Windham Financial Services. "I still think we're trying to put in a bottom in here," he said. "Unless the world is coming to an end, there's going to be good value in this market." The Dow gained 191 points, or 2.3%, to 8,340, with 28 of its 30 components advancing. The Standard & Poor's 500 index gained 22 points, or 2.9%, to 839. Among S&P sectors, financials led the gains after leading the slide on Monday. See Financial Stocks. Energy also rose, adding 1.8% as crude oil prices stabilized following a 9% slide on Monday. See Futures Movers. Among blue chips, shares of General Motors Corp. ) gained 5.4%. Video: GM Taking Bailout Plea Seriously An update on the American auto industry's bailout plea. WSJ's John Stoll says GM is scrambling to assemble a business plan that would show Congress how serious it's taking this request. Plus, he discusses what Ford and Chrysler need to do to convince Congress of their viability. Tuesday will be an important day for the automakers, with monthly sales scheduled for release as the Big Three are due to submit business plans in hopes of getting Congress to approve billions of dollars in government aid. Details of the manufacturers' proposals might be released after the close of trade. J.D. Power & Associates expects November sales declines of between 20% and more than 40% for the major automakers. Shares of Ford Motor Co. added 13%. General Electric rose 10% even after the conglomerate warned it expects fourth-quarter earnings at the low end of its previously announced range. GE also said it expects to book restructuring charges of $1 billion to $1.4 billion as it reviews losses in the current credit environment. Away from the Dow, Goldman Sachs fell 0.5% after The Wall Street Journal said its fourth-quarter loss could be as much as $5 a share, five times the current analyst consensus. The Nasdaq Composite advanced 33 points, or 2.4%, to 1,431. Among tech shares, Palm tumbled 12% after the Treo handheld device maker said it expects sales to fall and said it would cut jobs. U.S. stocks regurgitated much of the prior week's advance on Monday, with the Dow industrials tumbling 679 points, the S&P 500 losing 80 points and the Nasdaq falling 137 points. On a day when the U.S. was officially declared to be in recession, several manufacturing gauges around the world pointed to a sharp contraction in demand. Investors hunting for safe investments drove yields on 10-year Treasury bonds to as low as 2.645%. Elsewhere, Treasury Secretary Henry Paulson is due to speak later Tuesday on U.S. and China relations at a time of a falling yuan. Philly Fed President Charles Plosser is speaking on the economic outlook. Sears Holdings reported a widening loss as sales dropped 9%, though the company did announce a $500 million stock buyback. Another retailer, Staples , reported a 43% profit drop. Beazer Homes USA said its fourth-quarter loss widened to $474 million from $155 million as the builder reported a 35% drop in revenue.

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