December 7th, 2010
11:31 AM ET
3 years ago

Stocks cheer tax compromise

NEW YORK (CNNMoney.com) - Stocks moved higher Tuesday as investors welcomed a compromise between President Obama and Republican lawmakers that would extend the Bush-era tax cuts for two years.

The Dow Jones industrial average rose 78 points, or 0.7%, about one hour into the session. The S&P 500 gained 8 points, or 0.7%. The tech-heavy Nasdaq rose 17 points, or 0.7%.
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Filed under: CNNMoney.com • President Obama • Taxes
soundoff (13 Responses)
  1. Lynda/Minnesota

    What a remarkable surprise (not). Keep throwing your hard earned cash into the Stock Market, middle America. Pretty sure the CEOs and Board members are laughing in anticpation of their next dividend checks. Whether or not any of YOU will become the next millionaire is extremely doubtful. Good luck trying, though.

    December 7, 2010 11:40 am at 11:40 am |
  2. B

    Republican Greed and hypocrisy continues, Dysfunctional Senate continues, and middle class working people being ignored continues.

    The more things change, the more they stay the same, but we have the best country in the world..... right America ?

    We are all headed for life as it was 300 years ago with Kingdoms and slaves.

    December 7, 2010 11:50 am at 11:50 am |
  3. gt

    yippie..all the rich bankers and envestors are soooooooo happy....ugh....

    December 7, 2010 11:55 am at 11:55 am |
  4. concerned liberal

    Obama broken promise of the day. He promised to let these tax breaks expire. How many promises is that now?
    Guess all those finanacial corporate donations to Obama have a good return on the investment.
    Can I get my vote back?

    December 7, 2010 12:16 pm at 12:16 pm |
  5. Four and The Door

    The reason investors are confident now is because finally the Federal Government is doing something that will help the economy. When small businesses hire, good things happen for everyone. Investors know this.

    December 7, 2010 12:25 pm at 12:25 pm |
  6. America for sale

    Dems and Obama is doomed. Obama, who are you to give in w/o conferring with Dems. Majority of the country oppose tax cut for the rich and yet he gave in. If country make any improvement on economy, Repub will point to this and take all the credits. Say hello to Repub dominant and down to the great country we call America.

    December 7, 2010 12:31 pm at 12:31 pm |
  7. Sniffit

    "The reason investors are confident now is because finally the Federal Government is doing something that will help the economy"

    No, most economists predict very small stimulus to come out of this so-called deal on the tax cuts and other issues. The reality is, the deal increases the deficit and is, in the long run, no good for the economy. Moreover, Dept. of Labor and CBO have published studies completely debunking the idea that tax cuts are in any way an effective stabilizer and stimulus for economic and job growth. Rather, the unemployment insurance makes the top of that list, with tax cuts for the wealthy at the bottom. Settign aside the fact that the stock market is, as I've said before, a completely dead indicator for how the economy is doing in terms of the lives of the middle-class, the only boost that occurred here was a result of the already wealthy and large corporations finding out that their atxes aren't going to increase, so they now know that whatever they were holding aside in case their taxes did go up could now be tucked away, horded and consolidate in investment vehicles that won't really do a d-mn thing for job growth.

    December 7, 2010 12:39 pm at 12:39 pm |
  8. Take America Back from the Libs

    "Stocks Cheer Tax Compromise".......I humbly rest my case.

    December 7, 2010 12:43 pm at 12:43 pm |
  9. Take America Back from the Libs

    I hate to be the one to bring up historical facts, but; "Read My Lips, No More Taxes" cost Bush # 1 his job from a much more (than Dems) forgiving Republican base.....Obambi is looking more and more like a One-Term Prez! Every day that passes brings proof upon proof that this President is in way over his head......If you Liberal Dems want some much needed advise, here it comes; PROCRASTANATION.....if Obambi/Dems had not procrastinated over the Bush Tax cuts and a number of other matters while learning how to hold off on certain things like ObamaCare......you wouldn't be in the mess you are in today!
    NOT!!! The fact is; America does not want a socialistic society!

    December 7, 2010 12:50 pm at 12:50 pm |
  10. Rick McDaniel

    To be honest.........just how, is another huge spending spree, going to benefit the stock market?

    December 7, 2010 12:53 pm at 12:53 pm |
  11. Sniffit

    "Stocks Cheer Tax Compromise".......I humbly rest my case.

    The DOW has been hovering around 10,000 for several months and had begun its rebound well before that...where are the jobs? TAX CUTS DO NOT CREATE JOBS. Do some research instead of running around in an ideological vacuum and wearing your tinfoil hat too close to the microwave. And no, "Beck University" does NOT count, Professor Gullible. Because of the changes in the financial industry over the past couple decades and the plethora of useless investment vehicles they've invented during that time period, the stock market indicates whether the rich are actively playing economically useless gambling games with their money, not whether we're about to see hiring skyrocket.

    December 7, 2010 12:57 pm at 12:57 pm |
  12. deficit

    just one tenth of one percent tax on wall street would clear the deficit according to Ralph Nader. Obama just not strong.

    December 7, 2010 01:13 pm at 1:13 pm |
  13. stufit

    Such haters these liberal democrats are. I am not rich, but I do have a 401(k) so I have to rely less on the democrat liberal socialist ponzi scheme called social security. It is called taking personal responsibility for your life, not depending on liberal politicians anxious to buy your vote for a false promise. It is absolutely abhorrent that liberal democrats demonize, demean and degrade those who are successful and try to take care of themselves and their families. It is the union disease, rather than salute the achievers, make sure no one can succeed and idolize the lazy, non-contributor.

    December 7, 2010 01:43 pm at 1:43 pm |