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Friday, October 11, 2013 – Daily News 3B Wall Street exhales as threat of US default eases NEW YORK (AP) — You can almost hear Wall Street exhaling. The Dow Jones industrial average soared more than 300 points Thursday after Republican leaders and President Barack Obama finally seemed willing to end a 10-day budget standoff that has threatened to leave the U.S. unable to pay its bills. The news drove the Dow to its biggest point rise this year and ended a threeweek funk in stocks. It also injected some calm into the frazzled market for shortterm government debt. Republican leaders said Thursday they would vote to extend the government's borrowing authority for six weeks. A spokesman for Obama said the president would ''likely'' sign a bill to increase the nation's ability to borrow money so it can continue paying its bills. ''Congressmen and women are coming to terms with how calamitous it would be if the debt ceiling was not raised,'' said Joseph Tanious, Global Market Strategist for J.P. Morgan Asset Management. ''Cool- Wall Street er heads are prevailing.'' The Dow jumped 323.09 points, or 2.2 percent, to close at 15,126.07, its high for the day. The final surge came even as Senate Majority Leader Harry Reid said Democrats would not negotiate with Republicans as long as the government remains partly shut. Reid's comments were reported about 15 minutes before the market closed at 4 p.m. Eastern time. Stocks have steadily declined since mid-September as Washington's gridlock got investors worried that the U.S. could default on its debt and wreak havoc on global financial markets. While traders applauded a potential deal between the White House and Congress, more volatility could be ahead if it falls through. ''We don't need some grand bargain. We just need to avoid a default,'' said Brian Reynolds of chief market strategist at Rosenblatt Securities. ''Just don't bring us to the edge again.'' The Standard & Poor's 500 index rose 36.16 points, or 2.2 percent, to 1,692.56 and the Nasdaq composite rose 82.97 points, or 2.3 percent, to 3,760.75. Thursday's gains were extraordinarily broad. Of the 500 stocks in the S&P 500 index, only 11 fell. Banks and industrial stocks rose the most. A possible compromise between the two political parties could not come soon enough. Treasury Secretary Jack Lew has said the government will hit its borrowing limit on Oct. 17. That would leave the U.S. with enough cash to last just a week or two before a default became a real risk. A short-term extension of the debt limit is ''the right approach,'' said Jack Ablin, who manages $66 billion as chief investment officer at BMO Private Bank. ''It allows politicians to turn down the heat a bit while still keeping the broader issues on the front burner,'' Ablin said. In another bullish signal, small-company stocks rose even more than the rest of the market. Those stocks tend to be riskier than large, well-established companies but can also offer investors greater rewards. A sharp increase in small-company stocks means investors are more comfortable taking on risk. The Russell 2000 index jumped 26.04 points, or 2.5 percent, to 1,069.50. It is less than 20 points from an all-time high reached on Oct. 1. There were also hopeful signs in the market for short-term U.S. government debt. The yield on the one-month Treasury bill eased to 0.21 percent from 0.27 late Wednesday. The yield had spiked from near zero at the beginning of the month to as high as 0.35 percent Tuesday as investors dumped the bills out of concern that the government might not be able to pay them back when they're due. Investors demand higher yields when they perceive debt as being risky. One major investor made a move to cut its exposure to short-term U.S. government debt. Fidelity Investments, the nation's largest money market fund manager, said Wednesday it had sold all of its shortterm U.S. government debt. In other government bond trading, the yield on the 10-year Treasury note edged up to 2.68 percent, from 2.67 percent late Wednesday. Still, the yield on the longer-term note has fallen in the past month. The move suggests that investors see any potential default as a short-term phenomenon and are predicting that economic growth will remain subdued in the long term. Retailers report modest September sales gains NEW YORK (AP) — Several retailers reported modest sales gains for September as shoppers who were worried about a partial government shutdown and the overall economy pulled back their spending from the prior month. The results increase concerns about how shoppers will spend for the crucial holiday season, the largest shopping selling period for retailers. Revenue at stores opened at least a year — a measure of a retailer's health— rose 2.0 percent in September, according to a tally of 10 retailers by the International Council of Shopping Centers. That was a slower pace than the 3.5 percent increase posted in August. L Brands, the parent of Victoria's Secret, and Costco Wholesale Corp. were among the chains that reported results that missed Wall Street estimates, while Stein Mart Inc. posted Tehama Country Real Estate results that beat analysts' expectations. Gap Inc., which operates its namesake chain, Old Navy and Banana Republic, reported a surprise, stalling a momentum it had enjoyed since early last year. Only a sliver of retail chains report monthly sales figures, and the list doesn't include Wal-Mart Stores, Macy's Inc. and many other large chains. But it offers some clues into consumer spending heading into the holiday shopping season. September was a difficult month. Warmer-thanusual weather hurt sales of sweaters and other fall clothes. But economic con- cerns also dampened sales. Shoppers worry that the partial government shutdown, which is on its tenth day and has forced several hundred thousand federal workers off the job, will be prolonged. That, and the possibility that politicians won't resolve their deadlock over the federal debt limit. This Week Get Results! Put your ad in Real Estate ONLINE ADVERTISING INCLUDED. Call Suzy Noble 527-2151 ext. 103 20095 Quartz Ct. Cottonwood OPEN HOUSE Saturday 10/12 • 12pm-2pm Hosted by Kori Cadorin – 530-276-3599 – kori@soldbykori.com Sunday 10/13 • 11am-2pm Hosted by Sara Matthews – 530-526-3603 – sarahre4u@yahoo.com 2500 sq. ft. + 500 sq. ft, bonus game room/home office. Impeccable condition, separate insulated shop, wrap around deck, gated entry on approx. 2 acres. 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