Optimism for A Cliff Deal Puts Stocks on Track for Big Gains (BAC, DAL)
Several important reports were released on Tuesday indicating changes in controlling economic factors in the US. It was announced that the trade deficit during the month of October widened by 4.9% due to a large drop in exports. This slowing of global demand continues to negatively affect the US. Small business optimism fell off sharply in October to the lowest reading since March 2010. On a positive note, job openings rose to 3.68 million - a four-month high - as companies gear up to face the fiscal cliff. Despite hopes that a fiscal cliff deal is close, Senator Harry Reid commented on Tuesday that no deal will likely be reached before Christmas.Delta Air Lines (DAL) announced it will be buying a 49% stake in Virgin Atlantic valued at $360 million. The tech industry continued to make gains today, leading the S&P 500. US Treasuries fell to record low yields after a three-year note auction.
Word on the Street
- Trade deficit in the US widens in October, exports see biggest drop in four years.
- According to the recently released index, small business optimism has tumbled since the presidential election.
- Delta (DAL) to buy a 49% stake in Virgin's Singapore Airlines to expand its network.
- Liberty Interactive (LINTA) takes control of TripAdvisor in a $300 million deal.
- Job openings reach a four-month high in October and increase by 128,000.
- Bank of America (BAC) sees lowest satisfaction score since 2000 after rising fees.
- The price of US Treasuries drops on Tuesday on budget talk hopes.
Published on Dec 11, 2012By InvestorGuide Staff