• Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

  • Don't take us for fools

    It's time for businesses to stop thinking consumers are gullible, says Mandi Smallhorne.

All data is delayed
See More

US stocks gain amid fiscal cliff hopes

Dec 21 2012 07:36

New York - US stocks swung higher on Thursday as the market appeared to show optimism about a deal in Washington to prevent the economy from going over the "fiscal cliff."

The Dow Jones Industrial Average finished the session up 59.75 points at 13,311.72.

The broad-market S&P 500 gained 7.88 points at 1,443.69, while the tech-rich Nasdaq Composite climbed 6.03 points at 3,050.39.

With an end-of-the-year deadline looming, Washington continues to wrangle about the so-called fiscal cliff, a mix of tax hikes and spending cuts that, in the absence of a political compromise, could take the world's biggest into recession.

Still, traders appeared to see prospects for deal.

"The sentiment is that if both side have given a little already, there is still room in the middle to meet and there is time to do it before the end of the year," said analyst Art Hogan of Lazard Capital Markets.

"This market has a sense we will get something accomplished out of Washington and that is why we had this end of the day rally."

Investors also seemed bolstered by a series of positive economic data, including an upward revision to 3.1% of gross domestic product growth in third quarter and a spike in sales of existing homes to a three-year high.

Stocks in focus included NYSE Euronext, which soared 34.1% on word that InterContinentalExchange (ICE) would buy it for $8.2bn in a deal that would create the world's biggest market operator. ICE was up 1.4%.

Oracle dipped 0.44% after announcing it would buy Eloqua, a cloud software firm. The deal is expected to close in the first half of 2013. Eloqua rose 32%.

Google edged 0.31% higher. Late on Wednesday, the tech giant announced it was selling the Motorola Mobility Home unit to global communications technology company ARRIS in a cash and stock deal valued at $2.35bn. ARRIS was up 3.6%.

Bond prices held steady. The 10-year US Treasury yield stayed at 1.80, while the 30-year remained largely unchanged at 2.98.

Bond prices and yields move inversely.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

wall street  |  markets  |  us fiscal cliff



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote