US Stocks Rise on Hopes for Budget Deal, Europe
The stock market is starting the holiday week with a big gain.
The Dow Jones industrial average was up 153 points at 12,741 in the first half-hour of trading Monday. The Standard & Poor’s 500 index rose 19, or 1.4 percent, to 1,378. The Nasdaq composite average gained 43, or 1.5 percent, to 2,895.
European markets rallied before U.S. markets opened. Financial analysts said it was because of optimism that leaders in the United States will reach a deal to avoid tax increases and government spending cuts set to take effect Jan. 1.
"It is quite clear that both sides want to come to a compromise and that a reasonable compromise is available," said David Kelly, chief global strategist for J.P. Morgan Funds, in a note to clients.
A pair of strong corporate earnings reports also boosted Wall Street. Lowe’s said its third-quarter profit surged 76 percent. That’s after a strong report from Home Depot last week. Lowe’s rose $2.18, or 7 percent, to $34.13.
Tyson Foods, the country’s largest meat company, also beat Wall Street expectations. Its stock rose $1.18, or 7 percent, to $18.06.
Stocks fell sharply last week, marking their fourth week of declines, as traders fretted about the possibility that lawmakers will fail to prevent the package of spending cuts and tax increases known as the "fiscal cliff."