U.S. Stock Futures Rise as Congress Works Toward Deal By Jeff Sutherland & Adam Haigh - Dec 31, 2012 9:50 AM ET Facebook Share LinkedIn Google +1 2 COMMENTS Print QUEUE Q U.S. stock futures rose, paring the decline indicated for the Standard & Poor’s 500 Index at today’s open, as Congress worked to reach a budget agreement before the so-called fiscal cliff takes effect in two days. S&P 500 index (SPX) futures expiring in March rose 0.5 percent to 1,390.50 at 8:48 a.m. in Tokyo. The gain in the futures contract implies the benchmark gauge for American equities will open less than 0.5 percent below its Dec. 28 close of 1,402.43 when stock trading resumes today. Dow Jones Industrial Average futures gained 28 points, or 0.2 percent, to 12,805 today. “Some investors are looking through this in the hope that politicians can find a middle ground that will allow the increasing momentum in the economy not to be impeded,” said Tim Schroeders, who helps manage $1 billion at Pengana Capital Ltd. in Melbourne, in a phone interview today. “We’re in a period of frenetic negotiations. It’s disappointing that politics has got in the way to such an extent, with investors becoming increasingly nervous that this will drag on into the new year.” With little more than a day remaining to avert tax increases for almost every U.S. worker and to halt federal spending cuts, Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell worked to bridge gaps over income tax rates, the estate tax and other issues. McConnell, a Kentucky Republican, reached out to Vice President Joe Biden in an effort to break the impasse. Senators of both parties left separate closed-door briefings saying several impediments to a budget agreement remained. Fiscal Cliff Congress is working to avert more than $600 billion in tax increases and federal spending cuts, the so-called fiscal cliff, as the year-end deadline approaches. The House and Senate held an unusual Sunday session after President Barack Obama on Dec. 28 asked Reid and McConnell to try to find a solution. “There’s still significant differences between the two sides but negotiations continue,” Reid, a Nevada Democrat, said on the Senate floor. The Senate will resume its session at 11 a.m. Washington time and “perhaps” have further announcements then, he said. “I certainly hope so.” The benchmark index slipped 1.9 percent last week amid concerns lawmakers weren’t making progress on a budget deal. The S&P 500 has fallen 4.3 percent after reaching the highest level since 2007 in September as Obama’s re-election set up a budget showdown with the Republican-controlled House of Representatives. The gauge is still up 12 percent for 2012.
