Stocks soar after Obama signals progress on debt limit talks
Stocks add to gains after press briefing by president. With a surge of 200 points before falling back, Dow having its best day in three months as investors pile into stocks.
Stocks jumped sharply Tuesday, extending their previous gains, following a handful of upbeat corporate earnings and after President Obama's statement about the ongoing debate on how to cut the deficit and raise the debt ceiling.Skip to next paragraph
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The Dow Jones Industrial Average surged, led by IBM and Coca-Cola, after ending sharply lower in the previous session. The blue-chip index was up 206 points at its session high and is having its best day since Apr. 20.
Most key S&P sectors were higher, led by techs and consumer discretionary.
Stocks added to previous gains after President Obama endorsed the debt deal proposed by the bipartisan "gang of six" senators to cut the deficit by more than $4 trillion.
"It certainly seems like they're trying to get a deal...and that will take one uncertainty out of the market," said Joe Saluzzi, co-manager of trading at Themis Trading. "Now it's just a question of what kind of deal it will be."
'As of right now, [stocks are] going to rally on any chance of a deal," said Saluzzi.
“Markets are swinging on a pendulum between macro and microeconomic issues,” said Nicholas Colas, chief market strategist at ConvergEx Group. “It’s hard to know which side of the fence the metronome’s going to swing.”