U.S. stocks edged higher during early trading session on Monday as investors were upbeat following reassuring remarks from President Obama with regard to congressional negotiations over the issue of ‘fiscal cliff’ while strong quarterly earnings from Lowe’s Companies Inc. (NYSE: LOW
) also cheered the Wall Street as it reemphasized gradual recovery in the housing market.
About 30 minutes after the morning bell, the Dow Jones Industrial Average Index climbed 1.19%; the Nasdaq Composite Index jumped 1.36% while the S&P 500 Index leaped 1.47%
The market sentiment improved significantly on Monday following President Obama’s remarks in a press conference. In his first foreign trip after being reelected as the President, Mr. Obama while addressing a news conference in Bangkok on Sunday said that “I am confident we can get our fiscal situation dealt with.” The statement follows just after the first round of negotiations on Friday, which congressional leaders described it as “constructive”. Market participants are just starting to get a glimmer of hope that congressional leaders will be able to avert the ‘fiscal cliff’ or series of automatic spending cuts and tax increases from 2013, estimated at $600 billion, which can potentially throw the U.S. economy into recession.
On earnings front, world’s second largest home improvement retailer, Lowe’s edged up on Monday after the company reported 76% jump in fiscal third quarter profits while revenue also beat analysts’’ consensual estimate. The company also upwardly revised its outlook on same-stores-sales for the current quarter to 1% compared to earlier estimation of 0.5%.
Tyson Foods Inc. (NYSE: TSN
) also rallied after the food production company reported that fiscal fourth quarter profits which nearly doubled to $185 million or 51 cents a share, from $97 million or 26 cents a share, in the year earlier quarter.
In Europe equities continued to trade in green territory as investors took a sigh of relief following the remarks from Obama. The Pan European Stoxx 600 gained 1.72%, at last check.