US close: Stocks close up despite Boehner comments

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LONDON (ShareCast) - The main US equity benchmarks made decent gains on Thursday after some volatility throughout the session.

That volatility came after remarks from leading politicians took a noticeable turn for the worse late in the afternoon. This time, US Republican speaker of the House John Boehner said that Obama's actions have not matched his statements.

The White House retorted by saying that it would be "deeply irresponsible" if Congressional leaders asked for concessions in exchange for raising the debt limit.

This followed comments the previous day from Boehner who gave markets a boost after he said that he was "optimistic that we can continue to work together to avert this crisis sooner rather than later." He said that Republicans were willing to put "revenue on the table" as long as it is accompanied by spending cuts.

Ed Yardeni, the Chief Investment Strategist at Yardeni Research, wrote in a research note that he is "still expecting a deal".

He continued: "On the tax side, 98% of Americans will get to keep their Bush tax cuts on a permanent basis. Both sides of the partisan divide agree that this should happen. That's actually a very big deal and very good for the economy."

In addition to their positive reaction in the fact of Boehner's most recent comments, traders seemed to brush aside what at first glance looked to have been some rather weak economic data out before today's opening bell.

GDP Expands at a Rate of 2.7%

US gross domestic product expanded at a 2.7% pace in the third quarter (Consensus: 2.8%) according to the Bureau of Economic Analysis's second estimate, following a reading of 2.0% for the previous three months.

However, estimates of personal consumption expenditures were revised down as were those for Americans' after-tax income. The latter is now thought to have increased at a 0.5% annual rate once adjusted for inflation, compared with a previously estimated 0.8% pace. Stockpiles contributed 0.77 percentage points to growth, compared with a prior estimate that showed they subtracted 0.12 percentage points.

Initial weekly unemployment claims fell by 27,000 to 393,000 (Consensus: 390,000) in the seven day up until last Saturday.

Pending home sales data rose by grew by 5.2% month-on-month in October (Consensus: 1.0%).

Company news

Research in Motion rose following an upgrade from Goldman Sachs (NYSE: GS - news) from neutral to buy.

Data-centre technology company Infoblox made strong gains after it beat expectations and improved its outlook.

Book retailer Barnes & Noble (Berlin: BAR.BE - news) took a hit after revealing a less-than-impressive performance by its brick-and-mortar business.

Supermarket chain operator Kroger (Dusseldorf: 945916.DU - news) released better than expected quarterly earnings and sales.

Walt Disney unveiled a 25% increase in its quarterly dividend.

Fashion retailer TJX Cos (Berlin: TJX.BE - news) . announced a 3% rise in its same store sales for this past month of November (Xetra: A0Z24E - news) .

Retailer Target (Berlin: DYH.BE - news) published a 1% fall for its same store sales in November, well below what the company itself had expected.

Other Markets

10-year US Treasuries yield was at the 1.61% mark.

Front month West Texas crude futures rose by 1.83% to the $88.07 level on NYMEX.




S&P 500 (SNP: ^GSPC - news) - Risers
Kroger Co. (KR) $26.26 +4.79%
Advanced Micro Devices Inc (NYSE: AMD - news) . (AMD) $2.04 +4.08%
Marriott International Inc. (MAR) $36.63 +4.03%
Goodyear Tire & Rubber Co. (GT) $12.34 +3.70%
Vulcan Materials Co (NYSE: VMC - news) . (VMC) $51.29 +3.22%
Unitedhealth Group Inc (NYSE: UNH - news) . (UNH) $54.37 +3.07%
Fastenal Co (NasdaqGS: FAST - news) . (FAST) $42.23 +2.95%
Citrix Systems Inc. (CTXS) $62.56 +2.81%
Beam Inc. Common Stock (BEAM) $55.61 +2.68%
Alpha Natural Res (NYSE: ANR - news) (ANR) $7.18 +2.57%

S&P 500 - Fallers
Kohls Corp (NYSE: KSS - news) . (KSS) $45.02 -11.98%
Tiffany & Co (NYSE: TIF - news) . (TIF (SNP: ^TIFY - news) ) $59.79 -6.18%
Macy's Inc. (M) $38.61 -4.34%
Gap Inc. (GPS) $34.35 -4.10%
Sears Holdings Corp (NasdaqGS: SHLD - news) . (SHLD) $43.05 -3.21%
Best Buy Co. Inc. (BBY) $12.95 -3.00%
Intel Corp (NasdaqGS: INTC - news) . (INTC) $19.52 -2.84%
Range Resources Corp (NYSE: RRC - news) . (RRC) $65.66 -2.62%
AutoNation Inc (NYSE: AN - news) . (AN) $38.89 -2.53%
Metropcs Communications Inc (NYSE: PCS - news) . (PCS) $10.14 -2.41%

Dow Jones I.A - Risers
Caterpillar Inc (NYSE: CAT - news) . (CAT) $86.26 +1.55%
Hewlett-Packard Co. (HPQ) $12.90 +1.34%
Coca-Cola Co. (KO) $37.97 +1.09%
Verizon Communications Inc. (VZ) $44.03 +1.08%
Walt Disney Co. (DIS (SNP: ^DISY - news) ) $49.70 +1.02%
Cisco Systems Inc (Hanover: 918546.HA - news) . (CSCO) $19.02 +1.01%
AT&T Inc. (T) $33.95 +0.98%
JP Morgan Chase & Co. (JPM) $41.22 +0.96%
Pfizer Inc. (PFE) $24.86 +0.77%
American Express Co. (AXP) $55.93 +0.76%

Dow Jones I.A - Fallers
Intel Corp. (INTC) $19.52 -2.84%
Microsoft Corp (NasdaqGS: MSFT - news) . (MSFT) $26.94 -1.54%
Home Depot Inc (NYSE: HD - news) . (HD) $64.23 -0.93%
3M Co. (MMM) $90.65 -0.31%
International Business Machines Corp. (IBM (NYSE: IBM - news) ) $191.54 -0.23%
Johnson & Johnson (NYSE: JNJ - news) (JNJ) $69.23 -0.09%
United Technologies Corp. (UTX) $79.76 -0.05%
McDonald's Corp. (MCD) $86.48 -0.05%

Nasdaq 100 (Nasdaq: ^NDX - news) - Risers
Research in Motion Ltd. (RIMM) $11.55 +4.05%
Baidu Inc (NasdaqGS: BIDU - news) . (BIDU) $99.00 +3.33%
Fastenal Co. (FAST) $42.23 +2.95%
Citrix Systems Inc. (CTXS) $62.56 +2.81%
Infosys Technologies Ltd. (INFY) $44.66 +2.81%
Micron Technology Inc (Dusseldorf: 951691.DU - news) . (MU) $5.91 +2.34%
Cognizant Technology Solutions Corp. (CTSH) $67.15 +2.24%
Symantec Corp. (SYMC) $18.62 +2.14%
Express Scripts Holding Co (ESRX) $53.65 +2.11%
Maxim Integrated Products Inc. (MXIM) $29.41 +1.94%

Nasdaq 100 - Fallers
Sears Holdings Corp. (SHLD) $43.05 -3.21%
Intel Corp. (INTC) $19.52 -2.84%
Bed Bath & Beyond Inc (NasdaqGS: BBBY - news) . (BBBY) $58.65 -1.79%
VeriSign Inc. (VRSN) $39.35 -1.76%
Nvidia Corp. (NVDA) $12.05 -1.71%
Seagate Technology Plc (STX (KSE: 011810.KS - news) ) $25.25 -1.71%
Sandisk Corp (NasdaqGS: SNDK - news) . (SNDK) $39.79 -1.61%
Microsoft Corp. (MSFT) $26.94 -1.54%
Staples Inc (NasdaqGS: SPLS - news) . (SPLS) $11.76 -1.42%
Green Mountain Coffee Roasters Inc. (GMCR) $36.36 -1.36%

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