Stocks Heat Up as Budget Talks Progress
NEW YORK (TheStreet) -- Major U.S. equity averages heated up Monday as investors cheered signs that Washington officials were making noteworthy progress in their efforts to try to avert the so-called fiscal cliff.
Republican House Speaker John Boehner seems to be in the process of yielding to some of President Barack Obama's main demands, including higher tax rates for wealthy Americans, as both sides work to avoid falling over the cliff's $600 billion in automatic tax hikes and spending cuts at the end of the year. Boehner has suggested an increase in taxes on Americans with incomes exceeding $1 million.
The Dow Jones Industrial Average rose 100 points, or 0.76%, to 13,235. The blue-chip index began the session up 7.8% this year.
Wal-Mart (WMT) shares finished up 0.65% as the retail giant lowered prices on Apple products for the holiday season.
Cisco (CSCO) shares also edged higher, up 1.3%, as the networking giant hired Barclays to find a buyer for router business Linksys, Bloomberg reported, citing people with knowledge of the situation. Linksys is likely to fetch less than the $500 million Cisco paid for it in 2003 because it is a mature consumer business with narrow margins, the people told Bloomberg.
Most sectors in the broad market were in positive territory, led higher by financials, consumer cyclicals, utilities and capital goods.
Volumes reached 3.42 billion shares on the New York Stock Exchange and 1.90 billion shares on the Nasdaq. Advancers outpaced decliners 2-to-1 on the Big Board and 2.2-to-1 on the Nasdaq.