We have updated our privacy policy and terms & conditions. Find out more here.
9
 

U.S. stocks surge on fiscal cliff deal; Dow Jones up 1.67%

By Investing.com  |  Stock Markets  |  Jan 02, 2013 02:46PM GMT  |   Add a Comment
 
AA
+
-
Investing.com - U.S. stocks opened sharply higher on Wednesday, boosted by the announcement of a U.S. budget deal which should prevent the country from falling into recession.

U.S. stocks surge on fiscal cliff deal; Dow Jones up 1.67%
During early U.S. trade, the Dow Jones Industrial Average jumped 1.67%, the S&P 500 index rallied 1.82%, while the Nasdaq Composite index surged 2.51%.

U.S. lawmakers passed a compromise bill on Tuesday to avoid the fiscal cliff, blocking a series of looming tax increases and spending cuts that could have pushed the U.S. economy back into a recession.

U.S. President Barack Obama hailed the deal as "just one step in the broader effort to strengthen the economy".

However, investors remained cautious over the longer term outlook, with negotiations on raising the U.S. debt ceiling still to come in February.

In the tech sector, Apple surged 3.91% amid reports the company has begun testing hardware for the iPhone 6.

Separately, Samsung Electronics lost a bid to keep sales data of some of its products sealed in a U.S. patent dispute with Apple. A U.S. judge denied Samsung’s request to keep the sales figures secret while the company appeals an earlier sealing order.

Financial stocks added to gains, as shares in JP Morgan jumped 2.14% and Goldman Sachs rallied 2.43%, while Bank of America and Citigroup soared 3.96% and 4.37%.

Bank of America also found support after the Wall Street Journal reported that the company could be in position to repurchase the USD5 billion stake that Warren Buffett took in 2011.

Elsewhere, Facebook climbed 4.06% after JPMorgan lifted its price target on the social-networking company and Cowen & Co. initiated coverage of the firm with a "neutral" rating.

The news came after BMO Capital, known for bearish comments on the social-networking company, upgraded the stock to "buy" from "sell" on Tuesday.

In company news, Duff & Phelps gained 1.41% after the investment-banking company agreed to be bought by private-equity firm Carlyle Group for about USD665 million.

Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 surged 3.47%, France’s CAC 40 rallied 2.15%, Germany's DAX advanced 1.84%, while Britain's FTSE 100 jumped 2.27%.

During the Asian trading session, Hong Kong's Hang Seng Index surged 2.89%, while Japan’s Nikkei 225 Index was closed for a national holiday.

Later in the day, the Institute of Supply Management was to produce a report on manufacturing growth in the U.S.


Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

NQ 100
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg