U.S. markets were up today as news of a possible extension of the Bush tax cuts cheered investors. While there is no question that the country’s debt keeps growing and additional tax dollars from the expiration of the Bush tax cuts could help get control of the spiraling debt, the economy’s refusal to take a definitive hold on recovery has many investors believing that an extension of the tax cuts would be better for recovery as it may help to keep more money circulating and helping businesses.
The Dow Jones Industrial Average rose 81.36 points to 10,544.13 and the Nasdaq climbed 43.23 points to 2,285.71. The S&P 500 rose 12.35 points to 1,121.90.
European and Asian markets all closed up on Monday, likely due to the global meeting of banking and finance officials in Switzerland yesterday, during which new reform guidelines were announced that will help strengthen the financial system. These guidelines will work by making it mandatory for banks to save more capital, creating a larger resource of reserves for unexpected downturns and negative economic events.
Stocks in the news: Hertz Global Holdings Inc (NYSE: HTZ), Dollar Thrifty Automotive Group Inc (NYSE: DTG), XEROX CORP (NYSE: XRX).
