TribLIVE

| Home


Weather Forecast
 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Stocks rise and fall with twists in budget talks

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

Daily Photo Galleries

By The Associated Press
Thursday, Nov. 29, 2012, 5:14 p.m.
 

Optimism that a budget deal will be reached in Washington sent stocks modestly higher on Thursday. A pair of economic reports also brightened the mood.

The Dow Jones industrial average rose 36.71 points to close at 13,021.82.

The stock market took a brief turn lower when House Speaker John Boehner, R-Ohio, said little progress was being made in budget talks in Washington. The Dow was up as much as 77 points in morning trading, turned negative as Boehner made his remarks at 11:30 a.m., then slowly recovered in the afternoon.

Investors were encouraged by several positive economic reports, including a higher estimate of third-quarter U.S. economic growth, an increase in home sales and a drop in claims for unemployment benefits.

After meeting with Treasury Secretary Tim Geithner, Boehner said Democrats still have not said which cuts they would accept to government benefit programs, suggesting a final budget deal remains a long way off.

Republicans have said they are open to increasing tax revenues as part of an agreement but only if they are accompanied by significant cuts to spending.

Investors have been closely watching the talks between the White House and Congress over the “fiscal cliff,” a reference to sharp government spending cuts and tax increases scheduled to start Jan. 1 unless a deal is reached to cut the budget deficit. New developments in the talks have whipsawed the market.

“It's a headline-watching market with this fiscal cliff,” said David Brown, chief market strategist of the investment research firm Sabrient Systems.

Brown says the negotiations are likely to cause the stock market to take sudden turns in the weeks ahead.

In other trading, the Standard & Poor's 500 rose 6.02 points to 1,415.95. The Nasdaq composite index gained 20.25 points to 3,012.03.

In the market for government bonds, the yield on the 10-year Treasury note slipped to 1.62 percent from 1.63 percent late Wednesday.

 

 
 


Show commenting policy

Most-Read Stories

  1. Pitt students clean up Mon Valley neighborhoods for annual service day
  2. North Versailles Township commissioner opposes closing Green Valley Primary School
  3. ReClaim McKeesport ambassadors transform vacant lot
  4. Opposing defenses find success against Steelers by eschewing blitz
  5. Penguins forward Downie becoming a hit with teammates
  6. Large-scale batteries are integral in shift to renewable energy
  7. Shale oil, gas finds put Mon Valley on path to renaissance, leaders say
  8. Steelers looking for Spence to step up game at inside linebacker
  9. Cookies for Our Troops marches on
  10. North Huntingdon church shaken by youth pastor’s child porn rap
  11. Ebola watch lists to shrink
Subscribe today! Click here for our subscription offers.