(As of 7:13 am pacific)
Stocks are building on yesterday’s gains as Congress and
the White House are finally showing signs of compromise on a fiscal cliff
deal. Last night President Obama and
Democratic leaders proposed a plan that would allow Bush-era tax cuts to expire
for those making over $400,000 per year, lifting their limit from the
previously proposed $250,000. They also
extended a proposal that would result in $1.2 trillion in spending cuts. The offer was a counter to recent moves by
House speaker Boehner who proposed tax hikes on those making over $1 million. Negotiations still have a long way to go,
however moves in recent days suggest lawmakers are willing to compromise and
likely come to an agreement before year end.
After a positive day yesterday that saw the S&P rise 1.2%, the
markets remain cautiously optimistic.
International markets are mostly higher on positive US budget
talks. Gold is a touch lower and oil
slightly higher while interest rates also bumped up slightly. House speaker Boehner is expected to hold a
press conference this morning which could potentially set the tone for the day.
