Stocks Say 'Done Deal'

 | Dec 31, 2012 | 4:00 PM EST  | Comments
  • Comment
  • Print Print
  • Print

Stocks are saying "Deal." I wonder if we don't have to wait until the stroke of midnight to allow House Republicans to vote for a tax cut to make it all happen.

I have to admit, I am surprised they could pull this off, but I also recognize that this is a non-deal, meaning very little is accomplished. Sticklers who want a more balanced budget will, I think, recognize that almost nothing's being changed.

For the stock market, though, it's unmitigated good news if the suggested outline holds. The bonds tell you as much.

In fact, the deal seems so positive for stocks when it comes to capital gains and dividends that one has to wonder if the sellers come right back as buyers bet that the pause from the fiscal cliff ends quickly.

I remain skeptical that at the last hour something will happen with the Tea Party to derail things, making it a 2013 deal to cover their no-tax-increase butts.

Nevertheless, anything that gets this done, anything that gives certainty, at a time when Europe and Japan are turning around and China's getting stronger by the day is, alas, nothing but net for the bulls.

Random Musings: The deal as configured is great for the minerals stocks and I suspect will be terrific for the autos (Europe coming back, too) and the higher dividend plays that were so heavily sold these last few weeks.

Taxes, PoliticsTaxes, Politics

Columnist Conversations

The Fed like the economy according to the minutes released yesterday. Not enough to green light pushing rates...
Market looks to open slightly higher as market tries to make it four in a row up days this week. Great intervi...
Reuters reports: "Shake Shack, the fast-food restaurant chain that has developed a cult following for its 'Sha...
The good news for Sears is that between Eddie Lampert and Fairholme/Bruce Berkowitz 70% of the shares are in "...



Columnist Tweets


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.