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 .
More Related Stories
- Here come the tornado truthers. Already
- Peace Corps to allow gay couples to volunteer together
- Moore officials: Funds for "safe rooms" were held up by red tape
- Rand Paul: Congress should apologize to Apple, not the other way around
- Rescue crews race to find tornado survivors
- Looting in Oklahoma?
- Hundreds of low-wage federally contracted workers strike in D.C.
- Okla. mother's tearful reunion with her 8-year-old son
- New campaign compares gun control to anti-LGBT discrimination
- Study: Salt Lake City is gay parenting capital of the U.S.
- Inhofe and Coburn: Red state hypocrites
- Teen activist to meet with Abercrombie CEO
- Watch: Family emerges from storm shelter after tornado
- Must-see morning clip: Barackalypse Now
- Okla. tornado survivor reunited with dog trapped in rubble live on camera
- Is Pope Francis an exorcist?
- Oklahoma death count confirmed at 24, 9 children
- Frantic parents search for children in tornado's wake
- Crews dig through rubble after deadly tornado
- 51 killed in massive Oklahoma tornado
- Don't cry climate-change wolf
Featured Slide Shows
The week in 10 picsclose X
- 1 of 11
Lisa Montgomery embraces her nephew Thursday after a tornado tore apart her home in Cleburne, Texas. The twister killed six people and destroyed entire swaths of the North Texas town.
Credit: AP/LM Otero
Jack McMahon, the defense attorney for abortion doctor Kermit Gosnell, speaks outside the Criminal Justice Center in Philadelphia Tuesday. His client was convicted of killing three babies in his clinic, and will serve multiple life sentences.
Credit: AP/Matt Rourke
A photo taken Monday captures Vice President Joe Biden's response to a Milwaukee second-grader's innovative proposal to end America's epidemic of gun violence. This guy!
Credit: AP/Jenny Aicher
Sen. Rand Paul, R-Ky., flanked by a grouper-eyed Michele Bachmann, addresses the IRS' admission that it targeted Tea Party groups in advance of the 2012 election. In an op-ed for CNN Thursday, the Kentucky senator slammed the president for his faux outrage.
Credit: AP/Molly Riley
Ousted IRS chief Steven Miller is sworn in on Capitol Hill Friday. Miller testified before the House Ways and Means Committee on the extra scrutiny the agency gave conservative groups applying for tax-exempt status.
Credit: AP/J. Scott Applewhite
Attorney General Eric Holder pauses as he testifies on Capitol Hill before the House Judiciary Committee Wednesday. Holder is under fire, among other things, for the Justice Department's gathering of phone records at the Associated Press.
Credit: AP/Carolyn Kaster
O.J. Simpson sits during an evidentiary hearing at Clark County District Court in Las Vegas, Nev., Thursday. Simpson, who is currently serving a nine-to-33-year sentence in state prison for armed robbery and kidnapping, is using a writ of habeas corpus to seek a new trial.
Credit: AP/Las Vegas Review-Journal/Jeff Scheid
Major Tom to ground control: On Sunday astronaut Chris Hadfield recorded the first music video from space, a cover of David Bowie's "Space Oddity."
Credit: AP/NASA/Chris Hadfield
When it rains it pours. President Barack Obama speaks during a news conference Thursday with Turkish Prime Minister Recep Tayyip Erdogan, inexplicably inspiring an #umbrellagate Twitter meme.
Credit: AP/Jacquelyn Martin
A smoke plume rises high above a road block at the intersection of County A and Ross Road east of Solon Springs, Wis., Tuesday. No injuries were reported, but the the wildfire caused evacuations across northwestern Wisconsin.
Credit: AP/The Duluth News-Tribune/Clint Austin
Recent Slide Shows
- 1 of 11