Stocks edge higher; Dow boosted by McDonald's
NEW YORK — Stocks edged higher on Monday on Wall Street after a strong sales report from McDonald's offset concerns about the surprise resignation of Italy's prime minister. Investors also waited for developments in crucial U.S. budget talks.
The Dow Jones industrial average rose 14.75 points to 13,169.88. The index traded within a narrow range of just 56 points throughout the day.
The Standard and Poor's 500 finished 0.48 point higher at 1,418.55.
The Nasdaq composite ended up 8.92 points at 2,986.96.
McDonald's rose 93 cents to $89.41. A key sales figure rose in November as U.S. customers bought more breakfast offerings and limited-time Cheddar Bacon Onion sandwiches.
Robert Pavlik, chief market strategist at Palm Beach, Fla.-based Banyan Partners, said the company's strength was encouraging. McDonald's, one of the 30 stocks in the Dow, was trading as high as $100 at the beginning of 2012.
The pickup in McDonald's sales, he said, gave investors something positive to focus on as Italy's sudden political turmoil sent a jolt through European markets.
Hewlett-Packard rose 36 cents to $14.16 and helped push the Dow higher. The company's stock has been battered in the past two months after a weak earnings forecast.
and a public spat with the founder of Autonomy, a company it acquired for $10 billion last year.
Italian Prime Minister Mario Monti, who has been credited with restoring confidence in the nation's economy, announced that he would step down after former Prime Minister Silvio Berlusconi's party dropped its support for his government.
Italian government bond yields, a critical measure of how much the country has to pay to borrow, jumped. Concern that the European debt crisis was enveloping Italy, one of the eurozone's largest economies, helped stymie markets around the world earlier in the year.
Investors were also following developments in budget talks in Washington. Tax increases and federal spending cuts start Jan. 1 unless a deal is reached to reduce the budget deficit. Economists say the measures, if implemented, could eventually push the economy back into recession.
The yield on the 10-year Treasury note fell 1 basis point to 1.62 percent.
President Obama and House Speaker John Boehner, R-Ohio, met at the White House on Sunday while rank-and-file Republicans stepped forward with what they called pragmatic ideas to break the stalemate. The Obama-Boehner meeting was the first between just the two leaders since Election Day.
“There's a pretty good belief that the ‘fiscal cliff' can be avoided,” said Craig Johnson, a technical market strategist at Piper Jaffray. “Anytime somebody is talking, it's a good thing.”
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Former athletes open businesses
- Typewriters back in style, keeping repair shops busy
- Password change can block hackers from wireless cameras
- Workarounds exist for battery woes
- Apprenticeship programs fill gaps in American manufacturing
- Chevron laying off 162 workers from Moon-based unit
- Shale sector won’t gut area workforce
- Energy industry says it’s on top of methane leaks, but environmentalists want oversight
- Bank of New York Mellon 4Q earnings rise to $793 million, but revenue sluggish
- $300K in wine bottles stolen from Napa Valley restaurant found in North Carolina cellar
- Interest in hybrid, electric vehicles declines while gas prices fall