Obama To Make Statement At 1:30 PM, Stocks Pop Then Fade
With just 3 hours left in the trading day, why not up the stakes a little in the soap opera and take it straight to the star character:
- OBAMA MAKING STATEMENT ON BUDGET TALKS AT 1:30 P.M.
What will he disclose? Perhaps this, from the AP:
The contours of a deal to avert the 'fiscal cliff' emerged Monday, with Democrats and Republicans agreeing to raise tax rates on couples making over $450,000 a year, increase the estate tax rate and extend unemployment benefits for one year, officials familiar with the negotiations said.
But with a midnight deadline rapidly approaching, both sides were at an impasse over how to handle automatic, across-the-board spending cuts set to take effect on Jan. 1. Democrats want to put off the cuts for one year and offset the so-called sequester with unspecified revenue.
The deal in the works would return tax rates on families making over $450,000 to 39.6 percent, the same level as under former President Bill Clinton. The agreement would also raise tax on estates worth more than $5 million from 35 percent to 40 percent. Unemployment benefits would be extended for one year.
A Republican official familiar with the plans confirmed the details described to The Associated Press.
The officials requested anonymity in order to discuss the internal negotiations.
Some more from Reuters:
- FISCAL DEAL WOULD INCLUDE PERMANENT ALTERNATIVE MINIMUM TAX FIX, EXTEND UNEMPLOYMENT INSURANCE BENEFITS FOR ONE YEAR - SOURCE
- FISCAL DEAL WOULD EXTEND RESEARCH TAX CREDIT, WIND PRODUCTION TAX CREDIT AND INCLUDES "DOC FIX" - SOURCE
- FISCAL DEAL POSTPONES SEQUESTER, WOULD INCLUDE SOME $600 BILLION IN REVENUE -SOURCE FAMILIAR WITH TALKS
- FISCAL DEAL WOULD INCLUDE PERMANENT EXTENSION OF MIDDLE CLASS TAX CUTS - SOURCE
- STICKING POINT IN FISCAL DEAL IS ON SEQUESTER DELAY; WHITE HOUSE SEEKING DELAY FOR A FULL FISCAL YEAR - SOURCE FAMILIAR WITH TALKS
- FISCAL DEAL WOULD RAISE ESTATE TAX FROM 35 PCT TO 40 PCT - SOURCE FAMILIAR WITH TALKS
And no mention of the debt ceiling of course, or that there are no new spending cuts, or that this is at best a stopgap to get US to the debt ceiling debate in 60 days, or how this proposal would pass Congress,
Algos, however, as usual don't care about specifics, and are rabidly buying everything because other algos are rabidly buying everything, at first...
And then fade...