By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rallied Monday, notching
their best session in more than two months, on upbeat housing data
and increasing confidence that a U.S. budget deal would be
reached.
"It is quite clear both sides want to come to a compromise and
that a reasonable compromise is available," said David Kelly, chief
global strategist at J.P. Morgan Funds, about efforts to avoid
automatic tax increases and spending cuts scheduled to begin in
January.
The Dow Jones Industrial Average (DJI) added 207.65 points, or
1.7%, to 12,795.96, with all of its 30 components rising. Cisco
Systems Inc. (CSCO) rose 1.7% after it said Sunday that it would
acquire Meraki Inc. for $1.2 billion.
Intel Corp. (INTC) shares climbed 0.3% after the semiconductor
manufacturer and Dow component said Chief Executive Paul Otellini
would retire in May after nearly 40 years with the company.
The S&P 500 Index (US-S) climbed 27.01 points, or 2%, to
1,386.89, with its consumer sectors the best performing among its
10 industry groups.
The Nasdaq Composite Index (RIXF) gained 62.94 points, or 2.2%,
to 2,916.07.
The session had all three indexes gaining the most since Sept.
6, when the market rallied on European Central Bank President Mario
Draghi's plan to rescue the euro.
For every stock that fell more than seven gained on the New York
Stock Exchange, where nearly 711 million shares traded. Composite
volume topped 3.3 billion.
The U.S. dollar (DXY) fell against other global currencies as
commodities rallied.
Gold futures for December delivery rose $19.70, or 1.2%, to
$1,734.40 an ounce and crude oil for January delivery climbed
$2.36, or 2.7%, to $89.28 a barrel.
Stock indexes continued to rally after the National Association
of Home Builders/Wells Fargo index of builder confidence climbed to
46 in November from 41 the previous month.
Separately, the National Association of Realtors reported sales
of previously owned homes increased 2.1% to 4.79 million in
October.
Stocks on Friday finished with daily gains and weekly losses,
with the market getting a lift late in the week on optimism that
the White House and Congress would reach a budget agreement.
"I think the surprise is going to be a more cooperative
environment from our leaders going forward. Maybe that is what the
stock market sniffed out last Friday with its intraday upside
reversal on heavy volume," wrote Jeffrey Saut, chief investment
strategist at Raymond James & Associates, in an email.
On Sunday, President Barack Obama expressed confidence that the
United States would "get our fiscal situation dealt with."
The president spoke at a news conference in Bangkok, Thailand,
the start of a three-nation Asian trip.
Hope that a truce could keep the Israeli army from invading the
Gaza Strip for the first time in nearly four years also bolstered
investor sentiment.
"News reports coming out of Europe overnight suggest that Egypt
has stepped in to mediate a settlement of the escalating military
conflict between Israel and Hamas in Gaza," said Fred Dickson,
chief investment strategist at Davidson Cos., in a research
note.
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