US stocks higher as budget, debt cap deal appears imminent
In this Oct. 9, 2013, photo, trader Frank O’Connell works on the floor of the New York Stock Exchange. US stocks reversed losses and finished higher Monday amid encouraging signs from the White House and Congress that a deal was in reach on the budget and debt ceiling. AP PHOTO/RICHARD DREW
NEW YORK CITY—US stocks reversed losses and finished higher Monday amid encouraging signs from the White House and Congress that a deal was in reach on the budget and debt ceiling.
The Dow Jones Industrial Average added 64.15 points (0.42 percent) at 15,301.26.
The broader S&P 500 rose 6.94 (0.41 percent) to 1,710.14, and the Nasdaq Composite gained 23.40 (0.62 percent) at 3,815.27.
The Dow rebounded from a 100-plus point loss in the morning when traders showed nervousness over the looming Oct. 17 deadline to raise the country’s borrowing ceiling or see the cash-short Treasury forced to default on payments, possibly including US debt.
But early-afternoon reports of real progress toward a deal that would remove that worry and reopen the government with a fresh budget turned the market around.
“I’m very optimistic we will reach an agreement that’s reasonable in nature this week to reopen the government, pay the nation’s bills and begin long-term negotiations to put our country on sound fiscal footing,” said Senate Majority leader Harry Reid.
Drug maker Pfizer led the Dow 30, putting on 2.2 percent.
Appliance maker Whirlpool dropped 6.5 percent, the fall ostensibly linked to an analyst report pointing to slower sales.
Netflix surged 7.8 percent as the company revealed a deal with Sony Television Pictures for an original series, linking the two for the first time.
Among other stocks with significant volumes, Facebook added 0.8 percent while retail giant Wal-Mart fell 1.2 percent.
The main US bond markets were closed on Monday for the Columbus Day holiday, leaving the 10-year Treasury at 2.69 percent, while the 30-year was at 3.75 percent.
