Ahead of the Bell: Dow futures are trading down 25 points and S&P futures are trading down 4 points. After starting 2013 with the best rally in more than a year, investors are moving in to book profits, as they brace for the next budget battle on the debt ceiling vote. China reported its service sector expanded in December at its fastest pace in four months, the world's second largest economy continues to lead the Asian block recovery.
On the economic calendar today, ADP employment report for December will be out prior to the opening bell, a reading of 150K is expected versus 118K for the month prior. The Labor Department will also release weekly jobless claims before the market opens, 363K is forecasted, compared with 350K for the previous week.
The dollar is up against the major currencies. Gold is trading at $1,679. Crude...
Weight Watchers opens trading at NYSE Euronext Amsterdam to start the new year.
Every ‘New Year’ is an important moment for Weight Watchers, as millions of people annually decide to attempt to slim. Weight Watchers: “Increasing numbers of companies are also realising that equipping the average employee means more than just a laptop, an office chair and a phone. In 2012 we saw the numbers almost double of companies wanting to arm their employees against the continuing threat of becoming overweight arising from an unhealthy lifestyle. It’s becoming normal for employers to encourage or even prescribe a healthy lifestyle for their employees.” Managing Director Weight Watchers Benelux Jeanine Lemmens sounds the gong.
Stocks soared, closing near the high of the trading day as investors poured cash into stocks following news that the US will not be going over the fiscal cliff. Although Washington managed to avert going over the fiscal cliff, Business leaders complained that Congress still needs to address the rise in the nation’s $16 trillion debt. Volume was above average with the Dow Industrials and S&P 500 both advancing more than 2%. The Dow closed up 308.41 points to 13,412.55.
December ISM Manufacturing came in at 50.7 versus 50.3 economists estimates and prices paid index came in at 55.5 versus an expected 50.8. Meanwhile, November construction spending decreased by 0.3% month-over-month, against the expected increase of 0.5%.
Enjoy your Wednesday night!
• Dow closed up 308.41 pts/+2.35% to 13,412.55; 30 of the 30 Dow stocks closed higher
• S&P closed up 36.23 pts/+2.54% to 1,462.42; 10 of the 10 S&P 500 sectors...
Ok, so Congress was able to pull together a last minute deal to avoid the fiscal cliff and spark a triple digit rally. Can anyone say “relief rally?” In case you missed it, here is a quick cheat sheet on the deal:
Income taxes: The Bush-era tax cuts will remain permanently in place for the vast majority of Americans. Those individuals who make more than $400,000 a year—or families makingover $450,000 will see their tax rates increase from 35% to 39.6%.
Payroll tax cut: The 2-percentage point cut to the payroll tax expired at the end of 2012 and was not renewed. That means the Social Security payroll tax will increase from about 4.2% to 6.2%. That’s approximately $1,000 more for a typical family earning $50,000 a year. The deal also restores the Clinton-era limits on personal exemptions and itemized deductions for households earning more than $300,000 and for single taxpayers earning...