Hopes for a Budget Deal Carry Stocks Back into the Green (CSCO, AMSC)
PUBLISHED ON: Nov 28, 2012
The markets were lifted back up on Wednesday on hopes that a budget deal will be reached before the end of the year and possible fiscal cliff. Both President Obama and House Speaker John Boehner were encouraging about their ability to get this deal done soon. Ahead of the looming tax changes to begin in 2013, many businesses are making special dividend payments, including Costco (CSCO) who announced a $7 dividend today. Groupon (GRPN) was up on Wednesday after Andrew Mason addressed rumors of his replacement as CEO.The housing market saw some disappointing news today with new home sales dropping during the month of October by 3%. The Fed released their Beige Book, stating that the US economy is still growing modestly in hiring and consumer spending, but the manufacturing sector has weakened. After four days of gains, the Nikkei in Tokyo fell 1.2% and the yen rose slightly against the dollar after two weeks of decline.
Word on the Street
- Speaker Boehner and President Obama both show optimism for a fiscal cliff deal.
- Costco's (CSCO) stock is up after announcing a special dividend of $7 a share.
- New home sales in the US fall in October, prior month sales pace revised lower.
- The Fed's Beige Book says US economy growth and hiring rate is still modest.
- AMSC (AMSC) forecasts a greater-than-expected quarterly loss and cuts even more of its workforce.
- Moody's cuts Hewlett-Packard's (HPQ) credit rating from A3 to Baa1.
- Getco, LLC makes an offer for Knight Capital Group Inc. (KCG), valuing the company at $1 billion.