Both the Dow Jones and S&P 500 reached their highest levels since Election Day on Monday as investors continue to hold on to hopes for a fiscal cliff deal. In global markets, equities and bonds dropped sharply in Italy after the Prime Minister announced he would resign, also causing the euro to weaken early before paring most losses for the day. Many worry who will now help drag the country out of its debt crisis. In China, a report was released that its factory output was number two in the world. McDonald’s (MCD) reported sales in November that were higher than expected and saw shares rise. The tech industry performed well on Monday with HP (HPQ) seeings its stock gain on rumors that Carl Icahn may make a big investment. Cisco Systems (CSCO) also made headlines and saw shares jump 2.2%. American International Group (AIG) stated that the collective cost of Hurricane Sandy and its effects was around $1.3 billion. For the fifth day in a row oil marked daily losses over euro zone and demand concerns.
Word on the Street
- Speaker John Boehner and President Obama request specific details of debt deal.
- Hewlett-Packard (HPQ) rises after hours on investor speculation involving Carl Icahn.
- Report says Chinese economy will outgrow America by 2030, becoming the largest economic power.
- HSBC (HBC) to pay a $1.9 billion settlement to resolve money laundering probes.
- Italian markets sink after Prime Minister Mario Monti’s decision to resign was released over the weekend.
- Standard Chartered agrees to pay an additional $327 million in Iran case.
- Crude-oil futures see the fifth day of losses due to demand concerns.