US equities continued their upwards progress in mid-Tuesday trading amid renewed optimism that a deal to avoid the fiscal cliff could be reached in time.
Citing sources close to the matter, the Wall Street Journal
reported that budget negotiations between President Obama and House Speaker John Boehner have made progress in the past few days. The paper notes that the fact that both parties have kept mum on the details of the talks indicates real progress is being made.
Investors are also optimistic after Bloomberg reported that economists expect the Federal Reserve to announce a new round of Treasury securities purchases tomorrow to replace the Operation Twist stimulus program at the end of the two-day Federal Open Market Committee meeting.
The Dow Jones Industrial Average
(INDEXDJX:.DJI) was up 0.85% to 13,282.18 points as of 12:01 p.m. EST.
(NASDAQ:INTC) was the largest Dow gainer on the day, rising 2.44% to $20.57 amidst a broader tech rally. Texas Instrument
(NASDAQ:TXN) also jumped 3.59% to $30.89. Earlier, Intel introduced a new system of making chips for mobile devices that the company said would create faster and smaller transistors, thus improving Intel’s competitiveness in the mobile sector.
Ahead of the company’s 2013 outlook conference call tomorrow, 3M
(NYSE:MMM) also advanced 1.99% to $93.70, with investors expecting bullish projections from the company.
Dow financials edged up as well, with Bank of America
(NYSE:BAC) (+1.23% to $10.70), JPMorgan
(NYSE:JPM) (+1.35% to $42.88), and American Express
(NYSE:AXP) (+1.16% to $57.41) advancing on the day. The bellwether Financial Select Sector SPDR ETF
(NYSEARCA:XLF), which tracks all financial stocks in the S&P 500, was up 0.69% to $16.10.
(NYSE:HPQ) (+0.56% to $14.24) and Microsoft
(NASDAQ:MSFT) (+1.45% to $27.33) also rallied.
Only two of the 30 Dow components were not in the green in intraday trading, with McDonald’s
(NYSE:MCD) easing 0.30% to $89.14 and Travelers
(NYSE:TRV) staying flat at $73.34.
No positions in stocks mentioned.
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