Dow, S&P 500 Strengthen After Obama Speaks; Nasdaq Dips on Apple
NEW YORK (TheStreet) -- The Dow Jones Industrial Average and S&P 500 rose today, rebounding after President Barack Obama spoke to top business leaders and made a YouTube push to pass his budget proposal. A big drop in Apple (AAPL) shares dragged down the Nasdaq.
China's new leadership spoke of supportive measures for the Chinese economy, helping stocks worldwide. Earlier in the day, all three indices were trading in the red.
Obama addressed the Business Roundtable, a group of CEOs, about White House budget plans. He indicated to Republicans that he would refuse to let the tax-and-spending fight in the "fiscal cliff" talks to block raising the debt ceiling in early 2013. "I will not play that game," he said.
Prior to Obama's speech, Stephen Guilfoyle, U.S. economist at Meridian Equity Partners, had said that "when this president speaks, traders tend to sell while he's speaking. The market swoons, and when he's done, the market buys back their shares."
The Dow Jones Industrial Average closed up 83 points, or 0.64%, to 13,034. The blue-chip index, which has risen in four of the past six days, began the session up more than 6% in 2012.
Travelers shares jumped 4.9% after the provider of property-casualty insurance said it intends to resume repurchases of its common shares. The company also said its preliminary estimate of net losses relating to Storm Sandy is about $650 million.