Join        Login             Stock Quote

Stocks Rally On 'Cliff' Deal Hopes; Apple (AAPL) Jumps

 December 18, 2012 05:14 PM

(By Balachander) U.S. stocks ended on a sharply higher note amid signs of progress in negotiations over a deal to avert the looming "fiscal cliff".

The S&P 500 Index gained 1.15 percent to end at 1,446.79. The Dow Jones Industrial Average rose 0.87 percent to finish at 13,350.96. The Nasdaq Composite Index jumped 1.46 percent to close at 3,054.53.

President Barack Obama and U.S. House Speaker John Boehner are negotiating to address the so-called "fiscal cliff" of roughly $600 billion in spending cuts and tax increases set to begin in January.

Obama made a new budget offer that would raise taxes on those making $400,000, instead of $250,000.

Boehner, who termed Obama's latest offer as not balanced, has proposed a measure that allows tax increases only on those earning over $1 million.

[Related -Fusion-IO, Inc. (FIO): Can Fusion-IO Q2 Results Cheer Street?]

The White House on Tuesday rejected Boehner's "Plan B" proposal, saying the approach will not protect middle class families and does little to address fiscal challenges with zero spending cuts.

The President is not willing to accept a deal that doesn't ask enough of the very wealthiest in taxes and instead shifts the burden to the middle class and seniors, The White House said in a statement.

On the U.S. data front, a report from the National Association of Home Builders showed housing market index rose to 47 in December from a revised 45 last month, reaching a new six-year high.


In corporate news, Apple Inc. (NASDAQ: AAPL) jumped 2.92 percent though the technology behemoth lost a key ruling. A California judge denied Apple's request to ban 26 Samsung devices.

[Related -Google Inc (GOOG): Why Nest Labs Deal Is A Wakeup Call For Apple Inc.?]

American International Group Inc. (NYSE: AIG) has priced the sale of roughly 1.65 billion shares of Asian life insurer AIA Group Ltd. at $3.91 (30.30 Hong Kong dollars) apiece. Shares added 1.57 percent.

American Railcar Industries Inc. (NASDAQ: ARII), controlled by billionaire-investor Carl Icahn, has proposed to acquire railcar maker Greenbrier Companies Inc. (NYSE: GBX) for $20 per share in cash. ARII shares jumped 6.64 percent and GBX shares added 7.38 percent.

Arbitron Inc. (NYSE: ARB), a provider of marketing information services, agreed to be acquired by analytics company Nielsen Holdings N.V. (NYSE: NLSN) for $48 per share in cash. ARB shares surged 23.63 percent.

FactSet Research Systems Inc. (NYSE: FDS) fell 4.36 percent after the provider of financial information issued revenue forecast that trailed consensus.

Diamond Foods Inc. (NASDAQ: DMND) added 2.58 percent after the company's adjusted quarterly earnings beat expectations by a penny. DMND posted a first-quarter loss as sales fell 10 percent. 

Xyratex Ltd. (NASDAQ: XRTX) added 2.81 percent after the data storage technology provider declared a special cash dividend of $2 per share, payable Dec. 31 to shareholders of record on Dec. 27.

Global Markets

European markets closed on a positive note, with Germany's DAX up 0.64 percent to close at 7,653.58. France's CAC40 added 0.29 percent to finish at 3,648.63. The U.K.'s FTSE 100 gained 0.40 percent to end at 5,935.90.

Asian markets ended mixed, with China's Shanghai Stock Exchange Composite Index inched up 0.10 percent to finish at 2,162.46. Japan's Nikkei 225 added 0.96 percent to close at 9,923.01. Hong Kong's Hang Seng Index shed 0.08 percent to end at 22,494.73. India's BSE Sensex ended at 19,364.75, up 0.63 percent.

Commodity & Currency Scan

Crude oil futures added 0.83 percent to $87.92 per barrel, and natural gas futures climbed 1.10 percent to $3.40 per million metric British thermal units. Gold futures dropped 1.54 percent to $1,672.1 per ounce and silver futures fell 1.89 percent to $31.67 per ounce.

In the currency market, the euro gained 0.44 percent against the U.S. dollar to 1.3222. The British pound rose 0.28 percent against the greenback to 1.6249, and the dollar advanced 0.37 percent against the Japanese yen to 84.2000.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageTackling China's Debt Problem: Can Debt-Equity Conversions Help?

China’s high and rising corporate debt problem and how best to address it has received much attention read on...

article imageWill Job Growth Kill The Bear-Market Signal For Stocks?

It’s all about jobs now. Actually, it’s always been about jobs. But the stakes are even higher—perhaps more read on...

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.