CLOSING UPDATE: GOP Proposal to Avert Default Triggers Massive Short-Covering Rally

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Stocks skyrocketed, putting in their strongest performance in more than nine months after reports of an imminent deal to prevent a debt ceiling crisis triggered massive short-covering. The dramatic turnaround in the equity market came on the heels of a GOP-proposed deal that would temporarily raise the debt ceiling in order to avoid defaulting on U.S. government debt. While there are significant roadblocks to an agreement, investors are betting that a deal will be announced before the weekend.

Momentum stocks staged an impressive comeback, but gains were posted across all sectors, especially in the financial and tech sector. The bullish environment was a bonanza for IPOs from Antero Resources ( AN ) and MacroGenics ( MGNX ) both of which were met with much stronger than expected investor demand.

Today's economic data was a non-event with initial jobless claims jumping 66,000 to a 6-month high of 374,000. But the data was shrugged off by the markets as it was skewed by reporting errors from California and the unusually high number of government employees filing for unemployment benefits due to the shutdown.

Here's where the markets stood at the close:

US MARKETS

Dow Jones Industrial Index was 323 points, or 2.2%, to 15,125

S&P 500 was up 36 points, or 2.2%, to 1,692

Nasdaq Composite Index was up 83 points, or 2.3%, to 3,760

GLOBAL SENTIMENT

FTSE 100 was up 1.46%

Nikkei 225 was up 1.12%

Hang Seng Index was down 0.36%

Shanghai China Composite Index was down 0.94%

UPSIDE MOVERS

OMX, Janney Montgomery upgraded the stock to Buy from Neutral and raised its price target 65% to $21.50.

RCON, The oilfield service company has deployed a new automation product for extraction of shale using a highly specialized supervisory control and data acquisition system.

QCOR, Raises quarterly dividend 20% to $0.30 per share

DOWNSIDE MOVERS

RT, Stock was downgraded by Raymond James to Underperform from Market Perform

CTXS, Reported preliminary third-quarter revenue and adjusted earnings below analysts' expectations.

WPCS, Faces a possible de-listing by Nasdaq



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: AN , MGNX

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