We Have a Deal…Will it Pass the House?! Stocks Soar into New Year!
Wall Street soared in the final day of 2012, capping off a very strong year for the markets. You wouldn’t have known it based on investor sentiment and general attitude among the population regarding equities. Markets rose on the day as we saw progress in negotiations between the Senate minority leader Mitch McConnell and Vice President Joe Biden. On Friday, it seemed that no
one wanted to be long heading into the weekend. Yesterday, it seemed that no one wanted to be short heading into the holiday. The Senate voted in the wee hours of the morning to overwhelmingly approve the measure, which in part calls from tax increases on income over $400,000 for individuals and $450,000 for families. This includes capital gains on those income levels from 15% to 20%. The Dow Jones Industrial Average climbed 166 points, or 1.3%, to 13,104.14.The S&P 500 index added 23.76 points, or 1.7%, to 1,426.19. The Nasdaq Composite climbed 59.20 points, or 2%, to 3,019.51. On the year, the blue chips advanced 7.3% in 2012, the S&P 500 saw a 13% yearly rise, while the tech heavy Nasdaq was the best performer, up almost 16% from the end of 2011.
Crude for February delivery rose $1, or 1.1%, to settle at $91.82 a barrel on the New York Mercantile Exchange. Despite the gain, it was crude’s first loss in four years, losing 7.1% in 2012. On the other hand, gold saw its smallest annual advance in four years, climbing 7%. On Monday, the precious metal rose $19.90, or 1.2%, to settle at $1,675.80 an ounce. It was the 12th consecutive yearly rise for the precious metal, but the smallest yearly gain since 2008.