The Standard & Poor’s 500 (S&P 500) Index has risen for the 2nd day consecutively. The market was heavily influenced by the positive comments of the US lawmakers on the federal budget negotiations. The S&P 500 actually soared 0.5% higher and is currently at 1416.47. The Dow Jones Industrial Average also rose higher by 47.38 points and is at 13032.49. Though no substantial progress was achieved through the budget talks done today, yesterday both House Speaker John Boehner and President Barack Obama stated that a possible deal should be reached by end of 2012, if possible before the Christmas time. That being said, according to analysts, the US market is expected to stay volatile with every day new reports surfacing on the budget talks.
The favorable data of housing industry is also helping the US economy. More contracts were signed in October for purchasing previously owned homes. The index measuring pending home resale in US also surged 5.2% higher and it exceeded the initial estimates by big margin. The Gross Domestic Product of US also increased at a rate of 2.7% annually, higher than the prior estimate of 2% annual growth. Among the 10 industries covered under the S&P 500 index, raw material producers were the biggest gainers. The S&P GSCI Index surged by 1.1%, retreating from losses for 3 straight days. It tracks a total of 24 commodities.
Among the US companies, Apple jumped up by 1.1% whereas AMD surged by 4.3%. AMD, the 2nd largest computer processor producer in the world saw a total decline of 62% in 2012. Kroger, the supermarket operator saw an increase of 4.9% in the share prices as it was able to boost its initial profit projection for 2012. As Walt Disney was able to raise its annual dividend by 25%, its share prices soared 1.1% higher.
The 2nd largest jewelry maker in the world, Tiffany & Co. plummeted by 6.2%. The annual profit forecast of the company was cut to lower level due to less consumer spends and higher diamond prices. Department Store chain operator Kohl also suffered a drop of 10%. The expected same-store sales were of 2.1% increase for November, but, according to estimates, it will actually be down by 5.6%. Aeropostale Inc. also plunged by 4.7% as the projected fourth quarter earnings for the teen-apparel retailer is expected to be lower than estimates.