Wall Street up on economy bets as it looks past "cliff"
By Rodrigo Campos | December 19, 2012 7:28 AM EST
U.S. stocks rose on Tuesday as investors positioned for a better economic environment as confidence grew a deal would be struck in Washington regarding the ongoing budget negotiations.
The gains added to Monday's rally, giving the S&P 500 its best two-day run in a month.
Sectors poised to grow during economic expansion led gains as investors remain confident that Washington will come to an agreement to avoid the "fiscal cliff" --a series of spending cuts and tax hikes before the end of the year that could hurt economic growth.
The PHLX oil services sector index <.OSX> jumped 2.6 percent with six of its 15 components up 3 percent or more.
"The view is that the economy is getting better and that is always good for energy demand," said Shawn Hackett, president at Hackett Financial Advisors in Boynton Beach, Florida.
"Risk takers get into the sector, betting on a bump in rig counts."
Hackett said the United States would avoid "whatever the cliff means" for the economy, allowing investors to focus on economic growth.
Financial stocks also rose sharply, as traders bet on a greater demand for loans and a steepening of the yield curve. U.S. government debt sold off Tuesday, with the benchmark yield briefly hitting its highest since late October.
The S&P financial sector <.GSPF> added 1 percent.
The Dow Jones industrial average <.DJI> rose 108.19 points, or 0.82 percent, to 13,343.58. The S&P 500 <.SPX> gained 14.40 points, or 1.01 percent, to 1,444.76. The Nasdaq Composite <.IXIC> added 41.24 points, or 1.37 percent, to 3,051.85.
President Barack Obama's most recent offer to Republicans in the ongoing budget talks makes concessions on taxes and social programs spending. House Speaker John Boehner said the offer is "not there yet," though he remains hopeful about an agreement. Senate Democrats, however, have expressed concern about cuts to Social Security.
Shares of firearm makers sank in the aftermath of a school shooting in Newtown, Connecticut, on Friday that killed 20 children and six adults.
Smith and Wesson
Technology shares rose led by Apple , up 2.3 percent above $530 after losing nearly 13 percent in the last two weeks. The S&P Information Technology Index <.GSPT> rose 1.5 percent.
(Reporting by Rodrigo Campos; Editing by Nick Zieminski)
Most Popular Slideshows
- Real Life ‘Frozen’: Snow Overwhelms The US, Kills 7; More To Come (Pictures)
- Angelina Jolie, Brad Pitt in Sydney for ‘Unbroken’ Red Carpet Premiere [PHOTOS]
- ‘The Walking Dead’ Season 5, Episode 8 Spoilers: Daryl Dixon Is Set To Burn The Place Down in ‘Coda’
- G20 Summit Awkward Moments: Putin Yawns, Mystery Bubbles Appear, F18 Drama Ensues
Join the Conversation
- Walmart Early Price Matching Special Event On Nov. 21, 2014 Matches Its Competitors' Black Friday 2014 Prices And Includes Exclusive Deals For Samsung LED HDTVs And iPad Air 2 [WATCH VIDEO]
- US Plane Flying Over Russian Skies Spotted; Vladimir Putin Ready For 'Practical Cooperation' With US
- Alleged 'Microsoft Lumia 1030' Front Panel Leaked With Capacitive Buttons; 'Xbox One' Owners To Get Free Goodies On Anniversary
- Nexus 6 Release Date And Price Under AT&T, T-Mobile And Sprint Listed
- Walmart Pre-Black Friday 2014 Sale On Nov. 21, 2014 Includes Discounts On The 'NBA 2K15' For PS4 And The 'Skylanders Trap Team’ Starter Kit [WATCH VIDEO]
- Black Friday 2014 Sale: Top Deals On Game Consoles Xbox One, PS4, Nintendo Wii U And More
- Cold War 2: Russia, China And North Korea’s Blacklisted Company Fortify Alliance -- Reports