Beginning the day on wobbly feet, the markets found strength late in the morning and closed in positive territory across the board. After flirting with them so much, the S&P 500 and Dow are close to being in an official relationship with record highs. The Nasdaq is at its highest level since 2000.
At the close: DJIA: +0.49%, S&P 500: +0.15%, NASDAQ: +0.33%.
1) The House of Representatives passed a short-term increase to the debt ceiling. The measure, proposed at the end of last week and anticipated to glide through the GOP-controlled House, will make its way to the Democratically-controlled Senate, where leaders have said they will pass it without alteration. From there, President Barack Obama has indicated that he will also sign the bill.
A short-term fix has removed a lot of tension from the markets, but spending cuts still remain in focus for the short term, and the debt crisis facing America will take years to resolve. Market participants can only hope that Congressional leaders will use this opportunity to avoid a damaging last-minute solution… (Read more.)