Stocks Gain as Debt Deal Appears Attainable
The S&P 500 gained 0.63% to 1,703.19 after the benchmark's biggest jump since Jan. 2, while t he Dow Jones Industrial Average added 0.73% to 15,237.11. The Nasdaq closed up 0.83% to 3,791.87.
House Republicans offered to end the government nine-day-old government shutdown in exchange for budget cuts, according to reports from the Associated Press. Republican leaders have been pressing President Obama to cut funding for the Affordable Care and Patient Protection Act before they would agree to raise the limit on federal borrowing to pay for government expenditures and programs previously approved by Congress.
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The benchmark 10-year Treasury was little changed, yielding 2.687%, while the one-month bill was climbing 1/32, diluting the yield to 0.261% after popping for much of the morning.
On Thursday evening, during a 90 minute discussion, House Republicans proposed a temporary, six-week increase to the debt limit so that the U.S. may keep borrowing money to pay its bills while a bigger deficit reduction deal was discussed. The president said he was open to further discussions and also urged for an immediate end to the government shutdown. A statement issued shortly before the market closed from House Speaker John Boehner's spokesman said the president and he agreed they should keep talking.
The Reuters/University of Michigan's consumer sentiment index indicated a drop to 75.2 in the preliminary October reading from 77.5 in September versus economists' average expectation of 76, reflecting the psychological impact of the tension in Washington as the government shutdown heads into its 11th day.