Valdosta Daily Times

National, International News

October 15, 2013

Debt ceiling talks push stocks higher

NEW YORK — Stocks rose Monday, helped by signs that Washington was moving closer to a deal that would avert a default by the U.S. government.

The stock market started the session broadly lower after negotiations between the White House and House Republicans broke down over the weekend. However, stocks erased those losses in early afternoon trading following news that President Barack Obama would meet with Congressional leaders.

The market extended those gains after Senate leaders in both parties said progress was being made.

Democratic Majority Leader Harry Reid opened the Senate session Monday by saying he was “very optimistic we will reach an agreement this week that’s reasonable in nature.” The Republican Senate leader, Mitch McConnell, seconded Reid’s view, saying there had been “a couple of very useful discussions.”

The Dow Jones industrial average added 64.15 points, or 0.4 percent, to close at 15,301.26. The index was down as much as 100 points earlier in the day.

The Standard & Poor’s 500 index rose 6.94 points, or 0.4 percent, to 1,710.14. The Nasdaq composite rose 23.40 points, or 0.6 percent, to 3,815.27.

The United States will reach the limit of its borrowing authority Thursday, according to estimates from the Treasury Department. If the debt ceiling is not raised, investors fear the U.S. could default on its borrowings in the coming weeks.

Monday’s modest gains follow a surge in the market last week on signs of progress between Congressional Republicans and the White House. The Dow jumped 323 points on Thursday, its biggest gain of the year, and rose another 111 points Friday.

Investors continue to express hope that a deal can be reached before the debt crisis causes any lasting damage. In the last few years, political deals over major budget disputes have gone down to the last minute.

“We don’t need some well-crafted, detailed deal,” said Quincy Krosby, market strategist with Prudential Financial. “We just need to buy some time so they can keep negotiating.”

The U.S. government remains partially shut down because House Republicans want to attach conditions to a budget bill that would scale back the country’s new health care law. President Barack Obama is insisting that the government be reopened without strings attached. The partial shutdown is entering its third week.

Investors should brace for more volatility this week as long as the debt ceiling remains unresolved, said John Lynch, regional chief investment officer for Wells Fargo Private Bank, which manages $170 billion in assets.

“We’re basically trading on the news at this point,” Lynch said.

Wall Street also has a busy week of corporate earnings to work through.  Coca-Cola, Johnson & Johnson and Citigroup report their results Tuesday.

Bond trading is closed in observance of Columbus Day. Due to the holiday, trading volume was lighter than normal at 2.6 billion shares.

Among stocks making big moves:

— Netflix rose $23.51, or 8 percent, to $324.36 after The Wall Street Journal reported that the video streaming service is in talks to offer its services to cable companies.

— Merck & Co. fell 54 cents, or 1 percent, to $46.75 after another analyst lowered his rating on the drug developer, which recently announced job cuts and is dealing with the expiration of patents protecting key products.

 

1
Text Only
National, International News
  • Dollar Tree-Family Do_Rich copy.jpg Dollar Tree buys Family Dollar

    The fight for penny pinchers is intensifying.

    July 29, 2014 1 Photo

  • APTOPIX Mideast Israe_Rich copy.jpg Gaza war rages despite Hamas, Israel truce pledges

    Israel and Hamas launched new attacks Sunday in the raging Gaza war, despite going back and forth over proposals for a temporary halt to nearly three weeks of fighting ahead of a major Muslim holiday.
    The failure to reach even a brief humanitarian lull in the fighting illustrated the difficulties in securing a more permanent truce as the sides remain far apart on their terms.

    July 29, 2014 1 Photo

  • AP81072904918 copy.jpg Today in History for Tuesday, July 29, 2014

    Today is Tuesday, July 29, the 210th day of 2014. There are 155 days left in the year.

    July 29, 2014 1 Photo

  • AP4507280123 copy.jpg Today in History for Monday, July 28, 2014
    Today is Monday, July 28, the 209th day of 2014. There are 156 days left in the year. 
     

    July 28, 2014 1 Photo

  • Tentative deal reached on VA reform

    The chairmen of the House and Senate Veterans Affairs committees have reached a tentative agreement on a plan to fix a veterans’ health program scandalized by long patient wait times and falsified records covering up delays.

    July 27, 2014

  • United States-Libya_Rich.jpg US evacuates embassy in Libya amid clashes

    The United States shuttered its embassy in Libya on Saturday and evacuated its diplomats to neighboring Tunisia under U.S. military escort as fighting intensified between rival militias. Secretary of State John Kerry said “free-wheeling militia violence” prompted the move.

    July 27, 2014 1 Photo

  • AP9607270692 copy.jpg Today in History for Sunday, July 27, 2014

    Today is Sunday, July 27, the 208th day of 2014. There are 157 days left in the year.

    July 27, 2014 1 Photo

  • No ticket for Shrek over loud musical, chief says

    A musical being performed in a New Hampshire park has drawn some noise complaints, but the deputy police chief says he’s “not giving Shrek a ticket.”

    July 26, 2014

  • Arizona Execution Dru_Rich copy.jpg Arizona’s McCain: Execution was torture

    U.S. Sen. John McCain says the execution of an Arizona inmate that lasted two hours was torture.

    July 26, 2014 1 Photo

  • Ukraine Plane_Rich copy.jpg US: Russia firing into Ukraine

    Russia is launching artillery attacks from its soil on Ukrainian troops and preparing to move heavier weaponry across the border, the U.S. and Ukraine charged Friday in what appeared to be an ominous escalation of the crisis.
    Russia accused Washington of lying and charged Ukraine with firing across the border on a Russian village. It also toughened its economic measures against Ukraine by banning dairy imports.

    July 26, 2014 1 Photo

Top News
Poll

Do you agree with the millage rate increases?

Yes. We need to maintain services
No. Services should have been cut.
     View Results