We're now exactly two weeks from the so-called "fiscal cliff," and with a lack of exciting economic news for traders to worry about, we're back to trading negotiation rumors. Today the news is positive after both President Obama and Speaker Boehner appeared to give a little on their positions over the weekend. This has helped push the Dow Jones Industrial Average up 0.53% with 40 minutes left in the session, while the S&P 500 is up 0.81%, led by financials.
Bank of America and JP Morgan are up 3.1% and 1%, respectively, on hope for a deal. Yesterday I said these two stocks would be ones to watch this coming week because economic data regarding housing and the fiscal cliff will be the talk of Wall Street. For now, the cliff talk has been good for these stocks, but there's growing worry that housing data may not be strong, so stay tuned tomorrow.
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Wal-Mart has gained 0.75% today after stealing headlines about its iPhone 5 prices this weekend. The company is selling the 16 GB iPhone 5 for $127 -- well below Apple's retail store price -- and has said it will sell the 16 GB iPad for $399. Wal-Mart worked with Apple on the pricing in a move that breaks with Apple's standard pricing policy. It's also noteworthy that Wal-Mart is working with Apple while shunning the Amazon Kindle that's much more in line with the price point of Wal-Mart's deal-seeking customers.
On the downside, Hewlett-Packard fell 4.1% after an analyst from Deutsche Bank said that a breakup of the company would destroy value. The stock has been on a tear since rumors started spreading that activist investor Carl Icahn may be eyeing a stake in the company. But this drop shows just how fast profit can disappear when you chase speculation. I still think it's safer on the sidelines of this risky PC play right now.
The article Fiscal-Cliff Hope Boosts Stocks originally appeared on Fool.com.Fool contributor Travis Hoium is short Amazon.com and manages an account that owns shares of Apple. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool owns shares of Apple, Amazon.com, Bank of America, and JPMorgan Chase & Co. Motley Fool newsletter services recommend Apple and Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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