S&P hits new highs, Dow bounces from triple-digit losses

|By:, SA News Editor

Stocks reversed early losses to close mostly higher, with the S&P rallying to a new record high, as many investors think economic damage from the government shutdown will lead the Fed to keep easy money in place longer than otherwise expected.

The Dow recovered to finish flat after being down sharply for most of the day, weighed by weak earnings reports from IBM, Goldman Sachs and UnitedHealth.

Treasurys rallied, and short-term bills returned to more-normal levels, while the dollar index fell near its lowest level of the year as global investors perceive the debt deal as nothing more than a temporary fix.

Crude oil futures lost 1.6% to $100.67 for its lowest settlement in more than three months; gold jumped 3.2% to $1,322.70.