Everyone seems eager to get a deal by Christmas and apparently new revenues will be on the table according to Senate Minority Leader Mitch McConnell and House Speaker Boehner.
In other news, October Industrial Production came in at -0.4% today, a wide miss from +0.2% forecast and last month’s reading of +0.2%.
Europe officially slipped into recession and major European indexes and ETFs were broadly lower for the day and week.
Major U.S. Index ETFs:
Dow Jones Industrial Average ETF (NYSEARCA:DIA) +0.37%
S&P 500 ETF (NYSEARCA:SPY) +0.48%
Nasdaq 100 ETF (NYSEARCA:QQQ) +0.39%
Russell 2000 (NYSEARCA:IWM) +0.89%
Gold (NYSEARCA:GLD) -0.13%
Oil (NYSEARCA:USO) +1.39%
Notice oil’s sharp rise as tensions escalate in the Middle East, Palestinian rockets fall around Jerusalem and Tel Aviv and Israel prepares for possible ground attack.
For the week, major index ETFs were lower as the Dow Jones Industrial Average (NYSEARCA:DIA) dropped -1.8%, the S&P 500 (NYSEARCA:SPY) fell 1.5%, the Nasdaq (NYSEARCA:QQQ) slif 1.8% and the Russell 2000 (NYSEARCA:IWM) shed 2.4%.
This was the second straight weekly decline for the s&P 500, (NYSEARCA:SPY) the fourth straight weekly decline for the Dow Jones Industrial Average, (NYSEARCA:DIA) and the sixth straight weekly decline for the Nasdaq Composite (NYSEARCA:QQQ)
Bottom line: Friday provided some relief for battered markets as politicians seem to be getting together for a settlement of the fiscal cliff. Nevertheless, significant other headwinds including recession in Europe, possible war in Gaza, and slowing global growth remain unsolved.