Hopes Rise for Cliff Deal and Financial Sector Makes Strong Gains (MS, C)
US stocks ended higher on Monday mostly due to renewed optimism that talks in Washington are making progress. All three major indices were up after John Boehner's suggestion over the weekend to increase income tax rates for wealthy Americans. Banks including Citigroup (C), Bank of America (BAC) and Raymond James (RJF) did well today also. Gas prices in the US have now dropped to their lowest of the year--just under $3.25 a gallon on average.The dollar rose to its highest level in nineteen months against the yen as treasury yields increased for the fourth session in a row. American International Group (AIG) gained about 1.7% on Monday after announcing its sale of the remaining stake in its Asian insurance unit AIA, worth $6.5 billion.
Word on the Street
- Speaker Boehner presents possible breakthrough in fiscal cliff talks with income-tax offer.
- The US Postal Service deals with its busiest shipping day of the year with 9 million pieces of mail passing through the nation.
- Morgan Stanley (MS) to be fined $5 million over Facebook's (FB) IPO.
- American International Group, Inc. (AIG) plans to sell $6.5 billion worth of shares.
- It's looking less likely that Clearwire (CLWR) investors will get a higher bid from Sprint (S).
- Smith & Wesson Holding Corp.'s (SWHC) shares plummit after Connecticut shooting.
- Yelp (YELP) may be able to overcome the past year's underwhelming market performance after all.
- German holding company buys Caribou Coffee Co. (CBOU) for $340 million.
Published on Dec 17, 2012By InvestorGuide Staff