U.S. stocks finished higher on Monday, boosted by optimism that Republicans and Democrats will reach a deal to avoid the fiscal cliff to be triggered in the New Year.
This new optimism came from reports that Republicans are softening their stance on tax hikes for America's wealthiest. Over the weekend Senator John Boehner agreed to raise taxes on Americans making more than $1 million, reversing an earlier position that all Bush Era tax cuts should stand. According to reports, The White House has shot down this offer. However, optimism that negotiations are progressing has continued to boost stocks.
Monday's economic data calendar was light. The Empire State manufacturing index for December came in at a negative 8.1 vs. the negative 5.2 reading in November. Commenting on the news, CIBC stated, While the Empire survey did not show the same sort of weakness as other indexes (such as the Philly fed and ISM) last month, the latest reading highlights that firms in the region are not sheltered from the slowdown in corporate spending, uncertainty over fiscal policy and weak global demand that are weighing on the U.S. manufacturing sector more generally. That said, the firm stated that the Empire State figures should have a "limited" impact on the markets.
Commodity prices ended mostly higher. Crude-oil futures rose 47 cents, or 0.5%, to $87.20 a barrel, boosted by Middle East tensions and optimism that U.S. Lawmakers will reach a budget deal before year-end. Gold for February delivery rose $1.20, or 0.1%, to $1,698.20 an ounce.
Here's Where The Markets Stood At Day's End
- Dow Jones Industrial Average up 100.38 (+0.76%) to 13,235.39
- S&P 500 up 16.78 (+1.19%) to 1,430.36
- Nasdaq Composite Index up 39.27 (+1.32%) to 3,010.60
- Nikkei 225 Index up 0.94%
- Hang Seng Index down 0.41%
- Shanghai China Composite Index up 0.44%
- FTSE 100 Index down 0.33%
- DAX up 0.03%
- CAC 40 down 0.31%
- (+) CTIC, Shares rise after company announced the publication of results from a pre-clinical study of Pixuvri in The Journal of Pharmacology and Experimental Therapeutics providing potential mechanisms for lower cardiotoxicity in patients treated with Pixuvri who received prior doxorubicin therapy.
- (+) LXRX, Stock jumps after company announces it has received "Fast Track" status from the U.S. Food and Drug Administration for its orally-delivered small molecule drug candidate for diarrhea-predominant irritable bowel syndrome (IBS-d), LX1033.
- (+) ENZN, Company says it hired Lazard to act as its financial advisor to review a possible sale of the company or its assets.
- (+) KCAP, Approves a quarterly cash dividend of $0.28 per share of common stock for the quarter ended December 31, 2012.
- (-) CLWR, Shares fall after Sprint's buyout of the remaining 50% of the company for $2.97 a share, a "take-under" based on the stock's Friday closing price of $3.37.
- (-) END, Terminates Purchase Agreement with ConocoPhillips.