Other Citywire websites
Stay connected:

View the article online at http://citywire.co.uk/new-model-adviser/article/a638379

Overnight Markets: U.S. stocks jump on positive fiscal cliff talks

by Himanshu Singh on Nov 29, 2012 at 03:47

Overnight Markets: U.S. stocks jump on positive fiscal cliff talks

Wall Street rallied on Wednesday after comments from Speaker of the House John Boehner and President Barack Obama on a possible compromise to avoid the fiscal cliff fuelled optimism in the market.

The Dow Jones industrial average jumped 107 points, or 0.83%, to 12,985 at the close. The S&P 500 gained 11 points, or 0.79%, to 1,410. The Nasdaq Composite added 24 points, or 0.81%, to close at 2,992.

Shares gained after Boehner, an Ohio Republican, said he was optimistic that a budget deal to avoid fiscal cliff can be worked out. Adding to the positive sentiment, President Obama said he hoped to get a deal done in the next four weeks.

The comments overshadowed weaker economic news, including the Federal Reserve’s  Beige Book survey that said the U.S. economy expanded at a “measured pace” in recent weeks due to a slowdown in manufacturing and the impact of superstorm Sandy.

Separately, sales of new U.S. homes dropped 0.3% to a 368,000 annual pace following a revised 369,000 rate in September that was weaker than initially reported, the Commerce Department said.

Costco Wholesale Corp, up 6.3%, was the S&P 500's biggest percentage gainer after it became the latest company to announce a special dividend.

In deal news, Knight Capital Group Inc shares jumped 15.2% on news that Getco Holding proposed a $1.4 billion merger with Knight, while Virtu Financial offered to buy Knight for at least $1.1 billion.

Apparel retailer Express Inc added 8.9% after it forecast strong earnings for the current quarter as lower prices and easy-to-understand discounts led to robust Black Friday sales.

Green Mountain Coffee Roasters surged 27.3% a day after it forecast quarterly and full-year earnings well ahead of analysts' expectations.

J.C. Penney Co. rallied 4.6% as consumer staples and discretionary stocks posted gains.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Opportunities emerge as production moves back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

A spotlight on Alastair Mundy


Alastair Mundy met Citywire's Daniel Grote at the London Stock Exchange Studios for a detailed interview about the Investec Cautious Managed fund.

More about this article:

Archive


Sorry, this link is not
quite ready yet