Stocks Rally on Hopes Washington Standoff Will End
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Down over 100 points early, the Dow rallied back to close near the highs of the session as headway was seen on a last-minute budget deal. The Dow closed up 64 points, the Nasdaq added 23 and the S&P 500 gained 7.
Traction appears to be developing in the Senate, where respective leaders Harry Reid (D) and Mitch McConnell (R) are said to be within striking distance of a deal. A scheduled 3PM ET meeting today between President Obama and Congressional leaders was postponed to allow for further constructive talks.
"We have had an opportunity over the last couple of days to have some very constructive exchanges of views about how to move forward," McConnell said in a mid-day statement. "Those discussions continue, and I share [the] optimism that we're going to get a result that will be acceptable to both sides."
Negotiations in the Senate have moved away from defunding portions of Obamacare and have moved to spending levels, specifically, budget cuts required by the sequester. Democrats would prefer to see the sequester eliminated, but Republicans want to see the lower spending levels continued into the 2014 fiscal year.
Even if a bill in passed in the Senate, however, the Republican-controlled House could still derail it as a number of delegates there seem hellbent on making a stand to kill parts of Obamacare. Some are content - and even eager - to test the October 17 debt ceiling deadline.
On the other side, looking at the polls, some Democrats think they have Republicans on the ropes and are looking for the knockout punch.
While the stage is set for deal, as anyone that has been closely watching the three-ring circus knows, anything can still happen and probably will.
Traction appears to be developing in the Senate, where respective leaders Harry Reid (D) and Mitch McConnell (R) are said to be within striking distance of a deal. A scheduled 3PM ET meeting today between President Obama and Congressional leaders was postponed to allow for further constructive talks.
"We have had an opportunity over the last couple of days to have some very constructive exchanges of views about how to move forward," McConnell said in a mid-day statement. "Those discussions continue, and I share [the] optimism that we're going to get a result that will be acceptable to both sides."
Negotiations in the Senate have moved away from defunding portions of Obamacare and have moved to spending levels, specifically, budget cuts required by the sequester. Democrats would prefer to see the sequester eliminated, but Republicans want to see the lower spending levels continued into the 2014 fiscal year.
Even if a bill in passed in the Senate, however, the Republican-controlled House could still derail it as a number of delegates there seem hellbent on making a stand to kill parts of Obamacare. Some are content - and even eager - to test the October 17 debt ceiling deadline.
On the other side, looking at the polls, some Democrats think they have Republicans on the ropes and are looking for the knockout punch.
While the stage is set for deal, as anyone that has been closely watching the three-ring circus knows, anything can still happen and probably will.
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