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Overnight Markets: US stocks gain on hopeful signs in fiscal impasse
by Himanshu Singh on Oct 10, 2013 at 05:51
The Dow Jones and S&P 500 gained on Wednesday as lawmakers showed early signs of a possible break in the impasse on debt ceiling and amid optimism that Janet Yellen won’t rush to withdraw stimulus.
The Dow Jones industrial average ended up 26 points, or 0.18%, at 14,803. The Standard & Poor's 500 Index rose one point at 1,656. The Nasdaq Composite Index was down 17 points, or 0.46%, at 3,678.
In the latest move, Republicans and Democrats hinted at the possibility of a short-term increase in the debt ceiling to allow time for broader negotiations on the budget.
Meanwhile, Obama began inviting lawmakers from both parties to the White House for meetings to discuss the government shutdown and raising the debt limit.
The market was also relieved that Obama nominated Federal Reserve Vice-Chairwoman Janet Yellen to run the world's most influential central bank
Defensive sectors such as telecommunications and utilities were the top gainers yesterday. AT&T Inc. rallied 1.9% as the largest US phone company is near an agreement to sell its wireless towers to Crown Castle International Corp., sources said.
Darden Restaurants Inc (DRI.N) shares jumped 7.1% after a report hedge fund Barington Capital LP had taken a 2.8% stake in the owner of the Olive Garden and Red Lobster restaurants.
Hewlett-Packard Co (HPQ.N) rallied nearly 9% after Chief Executive Meg Whitman said she expects revenue to stabilise in 2014 with "pockets of growth" before the business accelerates again in 2015.
Yum! Brands Inc (YUM.N) fell 6.8% after the KFC parent warned it will take longer than expected for restaurant sales to rebound in China.
Elsewhere, Alcoa Inc. (AA) gained 2% amid better-than-forecast profit. Men’s Wearhouse (MW) Inc. jumped 28% after Jos. A. Bank Clothiers Inc. said it’s seeking to buy the apparel retailer for $2.3 billion in cash, or $48 a share.
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