SALON

Monday, Nov 19, 2012 3:15 PM UTC

US stocks rise on hopes for budget deal, Europe

By

Topics: From the Wires,

The stock market is starting the holiday week with a big gain.

The Dow Jones industrial average was up 153 points at 12,741 in the first half-hour of trading Monday. The Standard & Poor’s 500 index rose 19, or 1.4 percent, to 1,378. The Nasdaq composite average gained 43, or 1.5 percent, to 2,895.

European markets rallied before U.S. markets opened. Financial analysts said it was because of optimism that leaders in the United States will reach a deal to avoid tax increases and government spending cuts set to take effect Jan. 1.

“It is quite clear that both sides want to come to a compromise and that a reasonable compromise is available,” said David Kelly, chief global strategist for J.P. Morgan Funds, in a note to clients.

A pair of strong corporate earnings reports also boosted Wall Street. Lowe’s said its third-quarter profit surged 76 percent. That’s after a strong report from Home Depot last week. Lowe’s rose $2.18, or 7 percent, to $34.13.

Tyson Foods, the country’s largest meat company, also beat Wall Street expectations. Its stock rose $1.18, or 7 percent, to $18.06.

Stocks fell sharply last week, marking their fourth week of declines, as traders fretted about the possibility that lawmakers will fail to prevent the package of spending cuts and tax increases known as the “fiscal cliff.”

Stocks rebounded Friday afternoon, however, amid signs that President Barack Obama and Congress were prepared to cede some long-held bargaining positions. House Speaker John Boehner and Senate Minority Leader Mitch McConnell both said they offered higher tax revenue as part of a deal.

Volume was light on the first day of a holiday-shortened trading week. The market is closed on Thursday for Thanksgiving and will close early Friday.

Indexes in France, Germany and Britain were up by more than 1.5 percent as traders monitored Greece’s quest for its latest round of bailout cash. Greece needs international lenders and the International Monetary Fund to release the money so that Greece can meet upcoming payments to creditors.

Finance ministers from the nations that use the euro will meet Tuesday. Later in the week, leaders will convene to discuss the European Union’s budget for the next few years.

Traders also were following developments in the Middle East as conflict between Israel and Hamas flared. Concerns about instability in the region pushed oil up $1.09 to $88 a barrel in electronic trading on the New York Mercantile Exchange.

Rising crude prices lifted energy stocks, making them the best performers among the 10 industry groups in the S&P 500 index.

Earlier, Asian markets rose more modestly.

The yield on the benchmark 10-year Treasury note rose 1.62 percent from 1.58 percent late Friday, a sign that traders are selling low-risk investments. A bond’s yield rises as its price falls.

___

Daniel Wagner can be reached at www.twitter.com/wagnerreports .

Daniel Wagner

More Daniel Wagner.

Next Article

You Might Also Like

More Related Stories

Featured Slide Shows

Gripping photos: The people of the Turkey protests (slideshow)

close X
  • Share on Twitter
  • Share on Facebook
  • Thumbnails
  • Fullscreen
  • 1 of 11
  • The protests take on a festive element as police forces move out of the park and square. Wearing a gas mask, this young man dances to traditional Turkish music in front of Taksim Square’s Ataturk Monument.

  • In Gezi Park since March 31st, this protester, originally caught off-guard by the Government’s teargas and water cannons, went out and bought a Russian army mask from WWII, preparing for what was to come.

  • This rambunctious boy seems to be enjoying the chaos. After taking this picture he threw a stone at the already destroyed building in the background.

  • Forming a line, the police face off directly with protesters in Taksim Square. After a while, they retreated and there was a general cheer – a back-and-forth dance that has been common since the beginning of this protest.

  • An elderly woman in Gezi Park reads the news. The tent community occupying the park was violently destroyed on June 16th.

  • Many different groups had set up booths to promote their cause in Taksim Square and Gezi Park. Standing in front of one, this man waves his flag while posing with conviction.

  • Many home-remedies are used to minimize the effects of tear gas. This woman has put a milky solution on her face, removing her mask after the tear gas dissipated. Before sunrise, the police came again for another round of teargasing.

  • People capitalize on the uprising -- selling flags, beer, gas masks, sky lanterns and spray paint to name just a few of the popular items.

  • On Monday morning, June 11, the police execute a strong offensive. Many plain-clothed police officers, like the ones seen here, clash with protesters in the side streets away from the main stand-off in Taksim.

  • The authorities seem to be most aggressive in the night, pushing protesters away from the square and park. After being teargassed this young woman catches her breath with other protesters on Siraselviler Street.

  • Recent Slide Shows

  • Share on Twitter
  • Share on Facebook
  • Thumbnails
  • Fullscreen
  • 1 of 11

Related Videos

More Related Stories

Comments

 0 Comments

Comment Preview

Your name will appear as username ( settings | log out )

You may use these HTML tags and attributes: <a href=""> <b> <em> <strong> <i> <blockquote>

follow salon

Most Read

Popular on Reddit

links from salon.com

From Around the Web

Presented by Scribol
listener_new_rect The Listener: "We Are All Completely Beside Ourselves": Growing up primate

Recommendations