This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stocks Climb on Signs Budget Impasse May Break

Stocks in this article: ^DJI ^GSPC ^IXIC STJ XRAY PBPB TWTR

NEW YORK ( TheStreet) -- U.S. stocks jumped Friday on signs Congressional leaders may reach a debt-ceiling deal to avoid a public default even as the government shutdown continued for a fourth day. Progress toward a deal between the two major parties came amid optimism the Federal Reserve will continue to support the economic recovery with its accommodative bond-buying measures.

House Speaker John Boehner reportedly told colleagues that he wouldn't allow the current impasse to trigger a U.S. debt default, giving investors some encouragement that government leaders are mindful of the damage that could cause. Among possible scenarios for breaking the stalemate was talk of repealing a medical device tax tied to the Patient Protection and Affordable Care Act in exchange for not delaying its enactment.

"Underneath all of this noise from Washington is a decent economy, but it does get rattled like we're seeing this week, and I would rather have the battle be about this continuing spending than about the debt ceiling," said Nick Ventura, the president and CEO of Ventura Wealth Managment, which manages $225 million in assets.

The S&P 500 rose 0.62% to 1,689.07. The index lost 0.48% for the week. The Dow Jones Industrial Average closed up 0.43% to 15,061.60. The blue-chip index slid 0.78% this week. The Nasdaq added 0.85% to 3,806.29. The tech-heavy index gained 0.54% across the past five days.

Medical device stocks were gaining on hopes that the companies could be freed of the 2.3% sales tax. St. Jude Medical (STJ) gained 3.1% to $56.47, and Dentsply International (XRAY) increased 3.1% to $44.54.

Because of the halt in many government services, the Bureau of Labor Statistics is operating with a skeleton crew and delayed the September jobs report, originally due Friday, for the first time because of a government shutdown since Jan. 5, 1996.

Potbelly (PBPB) surged 124% to $31.34 a share on its first day of trading on the Nasdaq, after the sandwich shop chain raised $105 million by offering 7.5 million shares at $14, above the expected range of $12 to $13.

Twitter filed plans to go public with the Securities and Exchange Commission. The San Francisco-based microblogging site led by CEO Dick Costolo, could raise up to $1 billion, a number that for now, is just a placeholder used to calculate fees. The company's ticker symbol will be "TWTR," which pays homage to Twitter co-founder Jack Dorsey's first tweet, "Just setting up my twttr". Dorsey is one of Twitter's largest shareholders, owning 23.4 million shares, or 4.9% of the company. Evan Williams, who co-founded the company along with Dorsey and Biz Stone, owns the most shares, with 12% or 56.9 million shares. CEO Costolo owns 7.6 million shares.

Other large shareholders include private-equity firms Rizvi Traverse, Spark Capital, Benchmark Capital Partners, Union Square Ventures, and DST Global, who are all listed as being 5% stockholders, but exact amounts weren't given.

-- Written by Andrea Tse and Joe Deaux in New York

>To contact the writer of this article, click here: Andrea Tse.>

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs