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Overnight Markets: US stocks surge on debt-deal optimism
by Himanshu Singh on Oct 11, 2013 at 04:16
Wall Street surged on Thursday, with benchmark indices rallying the most since January, after signs of progress in negotiations to raise the US debt limit.
The Dow Jones industrial average rose 323 points or 2.18%, to 15,126, the S&P 500 gained 36 points or 2.18%, to 1,693 and the Nasdaq Composite added 83 points or 2.26%, to 3,761.
Shares gained after House Republican leaders moved to break a logjam in negotiations by proposing a bill to raise the federal government's debt limit without attachments.
The move was a significant shift for Republicans, who had tried to use the must-pass legislation to extract concessions from Democrats on spending and gutting the new healthcare law known as Obamacare.
Their proposal would postpone the threat of a US default from 17 October until the middle or end of November. The federal government would remain in a partial shutdown.
Meanwhile, data showed the number of Americans filing new claims for jobless aid touched a six-month high last week.
Industrial shares surged with Boeing, the world’s largest planemaker, rallying 3.9%.
Nike advanced 3.6% after DA Davidson & Co. raised its stock-price estimate for the world’s largest sporting-goods maker to $76 from $75.
Citrix Systems Inc (CTXS.O) shares were off 11.9% after the cloud-computing software maker estimated quarterly results below analysts' expectations because businesses had delayed contracts.
Financial shares also gained. American Express, the biggest US credit-card issuer by purchases, jumped 3.4%. Wells Fargo rose 2.7% while JP Morgan added 3.5%.
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