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Overnight Markets: Stocks jump as Senate nears deal on debt ceiling
by Himanshu Singh on Oct 17, 2013 at 05:49
US stocks gained on Wednesday after Senate leaders said they had a deal to reopen the federal government and raise the debt ceiling, which would avoid the threat of a debt default.
The Dow Jones industrial average was up 206 points, or 1.36%, at 15,374. The Standard & Poor's 500 Index was up 23 points, or 1.38%, at 1,722. The Nasdaq Composite Index was up 45 points, or 1.2%, at 3,839.
Shares gained after US Senate Majority Leader Harry Reid and Senate Republican leader Mitch McConnell said senators had come to an agreement that will reopen the government through 15 January and raise the debt ceiling until 7 February.
Separately, in its Beige Book report, the Federal Reserve said US growth continued to chug along at a "modest to moderate pace" in September and early October.
Financial stocks led the gains. Commodity sector also jumped after crude oil rose 1% while gold was essentially flat.
American Express Co (AXP.N) reported a 9.3% rise in earnings after the bell on Wednesday, but shares were flat in extended trading.
Bank of America Corp (BAC.N) rose 2.2% after the bank swung to a third-quarter profit as provisions for credit losses fell.
JP Morgan Chase & Co (JPM.N) gained 3.2% after the Commodity Futures Trading Commission said the bank will pay $100 million to settle charges for the "London Whale" trading scandal.
Intel Corp's (INTC.O) shares rose 1.3% despite revenue outlook missed expectations and the Dow component warned that production of its upcoming Broadwell processors was delayed.
On the negative side, IBM (IBM.N) fell 6% after the market closed after reporting earnings that beat expectations but revenue below consensus.
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