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Overnight Markets: Wall Street gains on budget deal hopes
by Himanshu Singh on Oct 15, 2013 at 04:30
Wall Street gained on Monday amid signs lawmakers could reach a deal in Washington to increase the debt limit before the government loses its ability to borrow money in three days.
The Dow Jones industrial average was up 64 points, or 0.42%, at 15,301. The Standard & Poor's 500 Index was up seven points, or 0.41%, at 1,710. The Nasdaq Composite Index was up 23 points, or 0.62%, at 3,815.
President Barack Obama was scheduled to meet with several congressional leaders, and while the White House said the meeting had been delayed, signs of negotiations were taken as a positive by the market. However, the government shutdown, entering its third week, was seen as a drag on the economy.
Investors are also looking ahead to corporate earnings this week, with results from Citigroup Inc (C.N), Coca-Cola Co (KO.N), Johnson & Johnson (JNJ.N), and Intel Corp (INTC.O) on tap.
Yesterday’s gains were broad, with eight of the S&P's 10 sectors higher. The two decliners were sectors considered defensive: telecom and utilities.
Shares of Netflix Inc (NFLX.O) rose 7.8% after the Wall Street Journal reported that the company is in talks with several US cable television companies, to make its streaming video service available through their set-top boxes.
St. Jude Medical Inc. rose 1.6% after the maker of heart-rhythm devices bought specialist device maker Nanostim Inc. for $123.5 million.
Advanced Micro Devices Inc. (AMD) gained 3.7% after Wedbush Securities Inc. analyst Betsy Van Hees upgraded her rating to the equivalent of buy from hold.
On the negative side, Expedia Inc (EXPE.O) plunged 6.2% after Deutsche Bank downgraded it to "hold" from "buy."
Appliance maker Whirlpool (WHR.N) fell 6.5% after a note from Cleveland Research pointed to softening demand for appliances. Merck & Co. fell 1.1% after Sanford C. Bernstein & Co. cut its rating on the stock.
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