MARKET SNAPSHOT: U.S. Stocks Rally On Hopes For Budget Deal
12/11/2012| 11:40am US/Eastern
By Polya Lesova and Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rallied on Tuesday, buoyed by optimism that budget negotiations in Washington would lead to a deal to prevent deep spending cuts and tax hikes early next year.
The technology sector led the stock market higher, with Apple Inc. (>> Apple Inc.) and Texas Instruments Inc. (>> Texas Instruments Incorporated) posting particularly strong gains.
The mood was buoyed by a report in The Wall Street Journal that budget negotiations between the White House and House Speaker John Boehner have made steady progress in recent days.
Speaker Boehner is due to speak around noon Eastern Tuesday.
Stock index futures also drew an early lift from an unexpectedly upbeat gauge of German investor sentiment, which rose sharply in December.
The Dow Jones Industrial Average (DJI) climbed 110.8 points, or 0.8%, to 13,280, with 28 of its 30 components in positive territory.
Chip maker Intel Corp. (>> Intel Corporation) was the top gainer in the Dow, rising 2.6%.
The S&P 500 index (SPX) advanced 12.66 points, or 0.9%, to 1,431.20, with the technology sector the biggest gainer among its 10 major sectors.
The Dow and the S&P 500 are both on track for a fifth consecutive trading day of gains.
TripAdvisor Inc. (>> Tripadvisor Inc) was the top gainer in the S&P 500. Its shares rallied nearly 8% after Liberty Interactive Corp. (>> Liberty Media Corp (Starz)) said it acquired voting control of the hotels-review site.
The tech-heavy Nasdaq Composite (RIXF) climbed 40.8 points, or 1.4%, to 3,028.75.
Apple's shares gained 3.6% after Morgan Stanley retained its overweight ranking for the consumer-technology company.
Shares of Delta Air Lines Inc. (>> Delta Air Lines, Inc.) rose 6% after it agreed to acquire a 49% stake in Virgin Atlantic Airways Ltd. from Singapore Airlines.
American International Group Inc. (>> American International Group, Inc.) climbed 4% after the U.S. said it would sell its remaining shares of the insurance company, with the government nearing closing out its largest rescue that came with the 2008 financial crisis.
Federal Reserve officials started a two-day policy-setting meeting on Tuesday, with Wall Street expecting central bankers to opt for more bond purchases when Operation Twist expires this year.
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