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. Penguins release Carcillo from tryout contract
  2. State Supreme Court Justice McCaffery sent explicit emails
  3. East Huntingdon man dies following police chase
  4. West Newton man found dead in helicopter wreckage near Rostraver Airport
  5. Rossi: Pirates can’t waste McCutchen’s prime
  6. Photos offer clue to assailant in fatal North Side Pittsburgh stabbing
  7. Enterovirus D68 case confirmed in southwestern Pennsylvania
  8. Plans for Irwin’s Lamp Theatre stress function over form
  9. Coroner identifies Cranberry woman who died in McConnells Mill fall
  10. Truck accident closes all inbound lanes of Parkway West
  11. Jobs on state website include ‘private party dancing,’ ‘car dates’
Subscribe today! Click here for our subscription offers.