Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

U.S. stocks advanced, with the Standard & Poor’s 500 Index compensating for weekly decline, as optimism grew that the lawmakers would reach a deal to end the budget impasse and avoid a default on the federal debt.

The S&P 500 added 0.7% to 1,690.50 at 4 p.m. in New York. The Dow Jones Industrial Average added 76.10 points, or 0.5%, to 15,072.58. About 5.2 billion shares changed hands on U.S. exchanges, 9.6% below the three-month average.

“There’s a working presumption that this is fundamentally theater and it’s going to work itself out favorably,” Mackintosh Pulsifer, vice chairman and chief investment officer of Fiduciary Trust Co. International in New York, said in a phone interview for Bloomberg. He helps oversee $15 billion. “There will not be a default, we’ll find some way to raise the debt ceiling, and government workers will go back to work. In a few weeks it’s not going to have any impact.”

John Boehner reiterated today that he won’t allow the U.S. to default on its debt, even if that requires Democratic votes as House Republicans met in Washington to find a solution to the budget impasse. Boehner later said reopening the government must start with negotiations and that he has no intention of ‘rolling over’ on spending concessions.

In corporate news, the most anticipated technology offering since Facebook, Twitter Inc. made public its S-1 prospectus yesterday and said it’s seeking to raise $1 billion. The documents suggested a valuation of $12.8 billion for the social service site.

Delta Air Lines Inc. gained 2.7% to a record $25.19, capping its ninth advance in the past 10 sessions. Chief Executive Officer Richard Anderson said at a conference in New York that the carrier is not seeing any travel decline from the government shutdown.

Lockheed Martin Corp. slumped 0.3% to $122.50. The largest U.S. government contractor said it has identified about 3,000 employees for furloughs on Oct. 7 because of the federal shutdown. The stock has dropped six straight sessions, the longest losing streak since June.

Union Pacific slid 1% to $153.90 after the railroad operator said it sees third-quarter earnings of $2.45 to $2.48 a share, compared with the average analyst forecast of $2.56. Operating revenue will increase as much as 4.5%, the company said, compared with a 7% gain predicted by analysts.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Gold rallies amid weaker dollar, FOMC meeting in focusGold rallies amid weaker dollar, FOMC meeting in focus Gold gained during early European trading as a weaker greenback supported dollar-denominated commodities. Market players are awaiting this weeks key U.S. data and news from the two-day FOMC meeting in order to gauge the U.S. economys recovery […]
  • Forex Market: USD/CAD daily trading outlookForex Market: USD/CAD daily trading outlook Yesterday’s trade (in GMT terms) saw USD/CAD within the range of 1.2981-1.3133. The pair closed at 1.3060, shedding 0.40% compared to Mondays close. It has been the 134th drop in the past 292 trading days. The daily high has been a lower-high […]
  • Outlook for USD/JPY cross during the upcoming weekOutlook for USD/JPY cross during the upcoming week US dollar ended the week on negative territory against the Japanese yen on trading Friday, as concerns appeared that the 16-day partial shutdown in the United States might probably urge the Federal Reserve Bank to delay its plans of scaling […]
  • Guggenheim downgrades Generac Holdings to “Sell”Guggenheim downgrades Generac Holdings to “Sell” Guggenheim Securities has downgraded Generac Holdings Inc (NYSE: GNRC) to "Sell" from a prior investment rating of "Neutral", as the financial services firm cited overvaluation.Generac Holdings' stock has risen over 31% since the […]
  • Qualcomm share price down, faces South Korean antitrust investigationQualcomm share price down, faces South Korean antitrust investigation Qualcomm Inc became a subject to yet another investigation, this time from South Korean authorities, following the chip designers record fine in China.According to a person familiar with the situation, Samsung Electronics, LG Electronics […]
  • Forex Market: EUR/AUD daily forecastForex Market: EUR/AUD daily forecast During yesterday’s trading session EUR/AUD traded within the range of 1.4380-1.4451 and closed at 1.4429.At 6:35 GMT today EUR/AUD was losing 0.04% for the day to trade at 1.4418. The pair touched a daily high at 1.4474 at 1:30 GMT, […]