We Should Have Fiscal Cliffs More Often! Historic 2013 Open!
Wall Street soared for the second consecutive session, with the S&P 500 gaining for the fifth consecutive yearly opener. Major averages jumped higher in the first session of 2013 in reaction to the House’s passage of a deal to avert the fiscal cliff….for the time being. We are right around the corner from a big fight over the debt ceiling, but let the good times roll at least for this week. THe last two sessions have brought about gains of roughly 4%. Alot of fresh money coming into equities at the turn of the year is also helping the cause. The Dow Jones Industrial Average saw its biggest yearly open of all time, rising 308.41 points, or 2.4%, at 13,412.55 with all 30 blue chips climbing. The S&P 500 index climbed 36.23 points, or 2.5%, to 1,462.42, with telecommunications the best performing of its 10 major industry sectors, all of which advanced. The Nasdaq Composite added 92.75 points, or 3.1%, to 3,112.26.
Crude followed equities higher as benchmark crude for February delivery rose $1.30, or 1.4%, to settle at $93.12 a barrel on the New York Mercantile Exchange. Gold settled up $13, or 0.8%, at $1,688.80 an ounce as the dollar fell, with the fiscal cliff deal adding some $4 trillion to the national debt over the next decade.
The ISM Manufacturing Index regained the expansion mark, rebounding from November’s 49.5 contraction to post a better than expected 50.7 reading. Premarket consensus was 50.5. No doubt that the approaching fiscal cliff hampered the reading.
Led by a drop in private nonresidential outlays, construction spending declined 0.3 percent in November following a 0.7 percent gain the month before. Market expectations were for a 0.6 percent gain.
On a year-ago basis, overall construction was up 7.7 percent in November versus 9.1 percent the prior month.