The Clinton Herald, Clinton, Iowa

Business & Technology

October 11, 2013

Wall Street exhales as threat of default eases

NEW YORK (AP) — You can almost hear Wall Street exhaling.

The Dow Jones industrial average soared more than 300 points Thursday after Republican leaders and President Barack Obama finally seemed willing to end a 10-day budget standoff that has threatened to leave the U.S. unable to pay its bills.

The news drove the Dow to its biggest point rise this year and ended a three-week funk in stocks. It also injected some calm into the frazzled market for short-term government debt.

Republican leaders said Thursday they would vote to extend the government’s borrowing authority for six week. A spokesman for Obama said the president would “likely” sign a bill to increase the nation’s ability to borrow money so it can continue paying its bills.

“Congressmen and women are coming to terms with how calamitous it would be if the debt ceiling was not raised,” said Joseph Tanious, Global Market Strategist for J.P. Morgan Asset Management. “Cooler heads are prevailing.”

The Dow jumped 323.09 points, or 2.2 percent, to close at 15,126.07, its high for the day.

The final surge came even as Senate Majority Leader Harry Reid said Democrats would not negotiate with Republicans as long as the government remains partly shut. Reid’s comments were reported about 15 minutes before the market closed at 4 p.m. Eastern time.

Stocks have steadily declined since mid-September as Washington’s gridlock got investors worried that the U.S. could default on its debt and wreak havoc on global financial markets. While traders applauded the deal between the White House and Congress, more volatility could be ahead if a deal falls through.

“We don’t need some grand bargain, we just need to avoid a default,” said Brian Reynolds of chief market strategist at Rosenblatt Securities. “Just don’t bring us to the edge again.”

Text Only
Business & Technology
  • 4-19-14 FBLA photo CHS Future Business Leaders of America attend conference Thirty members of the Clinton High School Future Business Leaders of America attended their spring leadership conference at the Marriott Coralville from March 26-29. Students attending the conference competed against other Iowa students in state and

    April 17, 2014 1 Photo

  • U.S. stock market rebounds after choppy day A stock market swoon turned into a comeback Tuesday. Stocks managed a late-afternoon rebound for the second time in two days as investors seemed to brush off a report of lower confidence among homebuilders and simmering tensions in the Ukraine. The l

    April 16, 2014

  • Document shredding offered CLINTON -- A Clinton bank will provide document shredding this weekend. The free service will be held from 9 to 11 a.m. Saturday at Citizens First Bank's office at 1442 Lincoln Way. This is the 10th year the bank has offered this service, Citizens Fi

    April 15, 2014

  • Why Facebook is getting into the banking game

    Who would want to use Facebook as a bank? That's the question that immediately arises from news that the social network intends to get into the electronic money business.

    April 14, 2014

  • Screen shot 2014-04-11 at 4.49.09 PM.png Train, entertain your pets with these 3 smartphone apps

    While they may not have thumbs to use the phone, pets can benefit from smartphone apps designed specifically for them.

    April 13, 2014 1 Photo

  • Millions of Android phones, tablets vulnerable to Heartbleed bug

    Millions of smartphones and tablets running Google's Android operating system have the Heartbleed software bug, in a sign of how broadly the flaw extends beyond the Web and into consumer devices.

    April 11, 2014

  • Tax fraud Bogus tax refunds a growing problem WASHINGTON, D.C. -- An Internet connection and a bunch of stolen identities are all it takes for crooks to collect billions of dollars in bogus federal tax refunds. And the scam is proving too pervasive to stop. A government report in November said t

    April 11, 2014 1 Photo

  • Investors flee tech stocks again, pummeling Nasdaq NEW YORK -- The high-flyers are laying the stock market low -- once again. Investors turned against biotech, Internet and other once-soaring stocks on Thursday, driving the Nasdaq composite index to its worst day since 2011. The sell-off in tech name

    April 11, 2014

  • Family Dollar to cut jobs, close about 370 stores

    Family Dollar plans to cut some jobs and close about 370 underperforming stores as it tries to reverse sagging sales and earnings. The discount store operator will also lower prices on about 1,000 basic items.

    Family Dollar did not provide details on how many jobs were expected to be eliminated.

    April 10, 2014

  • US stocks rally on Fed minutes, earnings news NEW YORK -- Once again, it was the Federal Reserve to the rescue for the stock market. Major U.S. indexes rose broadly Wednesday, helped by a report out of the nation's central bank that showed Fed policymakers want to be absolutely certain the U.S.

    April 10, 2014

Facebook