MARKET SNAPSHOT: U.S. Stocks Rise On Hopes For Budget Deal
12/11/2012| 09:59am US/Eastern
By Polya Lesova and Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rose on Tuesday as Wall Street remained hopeful that budget negotiations would lead to a deal to prevent deep spending cuts and tax hikes early next year.
The Wall Street Journal, citing people familiar with the matter, reported that budget negotiations between the White House and House Speaker John Boehner have made steady progress in recent days.
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 62.96 points, or 0.5%, to 13,231.78, with 29 of its 30 components in positive territory.
Hewlett-Packard Co. (>> Hewlett-Packard Company) and Intel Corp. (>> Intel Corporation) were the top gainers in the Dow, rising 1.4% and 1.6%, respectively.
The S&P 500 index (SPX) advanced 6.8 points, or 0.5%, to 1,425.34, with the technology sector the biggest gainer among its 10 major sectors.
TripAdvisor Inc. (>> Tripadvisor Inc) was the top gainer in the S&P 500. Its shares rallied 10% 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 22 points, or 0.7%, to 3,008.82.
Apple Inc.'s (>> Apple Inc.) shares gained 1.8% after Morgan Stanley retained its overweight ranking for the consumer-technology company.
Shares of Delta Air Lines Inc. (>> Delta Air Lines, Inc.) rose 3.3% 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 3% 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 start a two-day policy-setting meeting later in the day, with Wall Street expecting central bankers to opt for more bond purchases when the Operation Twist program expires this year.
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