Sunday, November 11, 2012

Stocks turn higher after 2 days of declines

FILE -In this Thursday, Nov. 8, 2012, file photo, Robert Nelson II of Barclays, left, and Fady Tanios of Raven Securities work on the floor of the New York Stock Exchange, in New York. (AP Photo/Henny Ray Abrams)

FILE -In this Thursday, Nov. 8, 2012, file photo, Robert Nelson II of Barclays, left, and Fady Tanios of Raven Securities work on the floor of the New York Stock Exchange, in New York. (AP Photo/Henny Ray Abrams)

(AP) ? Stocks turned higher on Wall Street Friday, reversing an early loss. The advance halted two days of declines caused by concern that political wrangling in Washington could push the U.S. economy back into recession.

The Dow Jones industrial average rose 25 points to 12,833 as of 11 a.m. It was down as much as 67 points but started rising at about 10 a.m., after news crossed that that University of Michigan's gauge of consumer confidence rose more than analysts had expected in November.

The market is coming off its worst two-day slide in a year. The Dow average plunged 434 since President Barack Obama won re-election as investors turned their focus to a deadline at the end of the year for Congress to act on reducing the budget deficit.

If it doesn't, a series of drastic government spending cuts and tax hikes will kick into effect, potentially derailing the U.S. economy. The Congressional Budget Office said Thursday that the measures, if implemented, would likely push the economy back into recession.

The dimming outlook for Europe also weighed on markets this week. The European Commission, the executive arm of the European Union, slashed its forecast for economic growth in the region Wednesday.

The yield on the 10-year Treasury note edged up to 1.62 percent from 1.61 percent late Thursday.

In other trading, the Standard & Poor's 500 index advanced 6 points to 1,384 and the Nasdaq composite climbed 20 points to 2,916.

Among stocks making big moves:

? Online deals company Groupon slumped $91 cents to $3.01 after it said after hours Thursday that it was hurt by the economic problems in Europe and growth failed to meet its expectations.

? J.C. Penney dropped $1.78 to $ 19.91 after the company reported a loss that was larger than investors were expecting. Shoppers have been abandoning the store after it got rid of blockbuster sales in favor of everyday low prices.

? Kayak Software surged $8.22 to $39.26 after the company said yesterday that it had agreed to be bought by Priceline.com Inc.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-11-09-Wall%20Street/id-2bc147119f174799b1b55a60fed245b4

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