Investing.com - U.S. stock markets surged higher into the close Wednesday, as progress in negotiations for a deal to avoid a U.S. budget crisis before a January deadline lifted risk sentiment across the board.
At the close of U.S. trade, the Dow Jones Industrial Average gained 0.83%, the S&P 500 added 0.78%, while the Nasdaq advanced 0.81%%.
President Obama’s confident words that “something will be done” to solve the fiscal cliff issue launched the bullish sentiment during the day.
Casting a bearish tint on the session, U.S. new home sales fell unexpectedly in October, while the previous month’s figure was revised down sharply, official data showed on Wednesday.
In a report, the U.S. Census Bureau said new home sales fell by 0.3% to a seasonally adjusted 368,000 units in October, confounding expectations for an increase to 390,000.
New home sales for September were revised down to 369,000 units from a previously reported 389,000.
Doubts over the Greek debt deal also weighed. Greece’s constitutional lenders reached an agreement Tuesday to reduce Greece’s debt-reduction target by EUR40 billion to 124% of gross domestic product by 2020.
But the lack of detail on how Greece will implement reforms needed to meet its new debt targets dented investor confidence.
Shares in the financial sector were broadly lower, with Bank of America down 1.2%, Citigroup losing 1.1%, while U.S.-listed shares of National Bank of Greece tumbled 8.1%.
On the upside, Green Mountain Coffee Roasters saw shares surge 22.8% after reporting stronger-than-expected earnings results for its fiscal fourth quarter ended September 29 after Tuesday’s closing bell. The company also raised its full-year earnings outlook.
Shares in Knight Capital Group rallied 16.1% after Getco Holding offered to buy the financial-services company for USD3.50 a share, a 41% premium to the stock’s closing price on November 23.
Wholesale retailer Costco jumped 5.1% after saying it plans to pay shareholders USD3 billion as a special dividend.
American Eagle saw shares climb 7.9% after the clothing retailer reported better-than-expected third quarter earnings, boosted by a 10% increase in same-store sales.
At the close of European trade, the EURO STOXX 50 gained 0.13%, France’s CAC 40 moved higher by 0.37%, while Germany’s DAX 30 added 0.15%.
Traders are anticipating the U.S. GDP and continuing jobless claims on Thursday.
At the close of U.S. trade, the Dow Jones Industrial Average gained 0.83%, the S&P 500 added 0.78%, while the Nasdaq advanced 0.81%%.
President Obama’s confident words that “something will be done” to solve the fiscal cliff issue launched the bullish sentiment during the day.
Casting a bearish tint on the session, U.S. new home sales fell unexpectedly in October, while the previous month’s figure was revised down sharply, official data showed on Wednesday.
In a report, the U.S. Census Bureau said new home sales fell by 0.3% to a seasonally adjusted 368,000 units in October, confounding expectations for an increase to 390,000.
New home sales for September were revised down to 369,000 units from a previously reported 389,000.
Doubts over the Greek debt deal also weighed. Greece’s constitutional lenders reached an agreement Tuesday to reduce Greece’s debt-reduction target by EUR40 billion to 124% of gross domestic product by 2020.
But the lack of detail on how Greece will implement reforms needed to meet its new debt targets dented investor confidence.
Shares in the financial sector were broadly lower, with Bank of America down 1.2%, Citigroup losing 1.1%, while U.S.-listed shares of National Bank of Greece tumbled 8.1%.
On the upside, Green Mountain Coffee Roasters saw shares surge 22.8% after reporting stronger-than-expected earnings results for its fiscal fourth quarter ended September 29 after Tuesday’s closing bell. The company also raised its full-year earnings outlook.
Shares in Knight Capital Group rallied 16.1% after Getco Holding offered to buy the financial-services company for USD3.50 a share, a 41% premium to the stock’s closing price on November 23.
Wholesale retailer Costco jumped 5.1% after saying it plans to pay shareholders USD3 billion as a special dividend.
American Eagle saw shares climb 7.9% after the clothing retailer reported better-than-expected third quarter earnings, boosted by a 10% increase in same-store sales.
At the close of European trade, the EURO STOXX 50 gained 0.13%, France’s CAC 40 moved higher by 0.37%, while Germany’s DAX 30 added 0.15%.
Traders are anticipating the U.S. GDP and continuing jobless claims on Thursday.