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U.S. stock futures are higher premarket on the last trading day of the year despite the...

U.S. stock futures are higher premarket on the last trading day of the year despite the inability of Washington to agree to a deal on the fiscal cliff. The calm reaction of the markets could suggest investors believe that today's cliff deadline is not really so critical after all and that a deal in a week or two will be just as good. Dow +0.2%, S&P +0.4%, Nasdaq +0.1%.
Comments (4)
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    Cliff or no cliff, life goes on. I, for one, am kind of getting used to the dysfunctional situation in Washington. If they ever start actually accomplishing anything I will have to rethink my investing thesis.
    31 Dec 2012, 06:52 AM Reply Like
  • Bret Jensen
    , contributor
    Comments (9838) | Send Message
     
    Yes, but they are down against fair value and it looks like first move today is down.
    31 Dec 2012, 07:02 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    I would say that there is complete unpredictability in terms of what actions might be taken today. Therefore I choose to bet on the unpredictable outcome.
    31 Dec 2012, 08:18 AM Reply Like
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    If there is any sense in the market, and I believe there is, then market participants know that a "compromise" that raises the debt limit, taxes millionaires and billionaires, cuts no spending and adds more than a trillion to the deficit is just business as usual--nothing to tank the market.

     

    On the other hand, it seems an odd combination to spark a rally.

     

    Keynesians raising taxes to avert a recession? Did they pay attention at Harvard during the stimulus seminar?
    31 Dec 2012, 08:18 AM Reply Like
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