U.S. stocks gain but Apple weighs on Nasdaq

U.S. stocks gain but Apple weighs on Nasdaq
Wall Street is buoyed by hopes for resolution of fiscal cliff
NEW YORK (MarketWatch) — U.S. stocks mostly rose Wednesday, as Wall Street applauded what appeared to be a softening of stances in talks to avert the fiscal cliff, but the Nasdaq Composite fell with Apple Inc.


“You get the impression that there’s movement in Washington, that positions are not ideologically hardened,” said Hugh Johnson, chairman of Hugh Johnson Advisors LLC in Albany, N.Y.


“There is so much focus on the cliff, I’m not even sure Friday’s employment numbers are going to be important,” said Johnson, who adds the number would likely to be distorted by superstorm Sandy.
Plus, the nonfarm payrolls report doesn’t really matter, “because the outcome of this negotiation will determine what the economy will look like in 2013, it could look modestly positive or it could look terrible,” said Johnson.


With an agreement, the U.S. economy should grow 2% to 2.4% next year, and if there is no deal, “we’re talking minus 0.5% if we accept the Congressional Budget Office’s analysis,” said Johnson.


“When you have something that has been a driver of the market down and the market’s up, well that’s a good combination if you don’t own Apple,” said Johnson.


The Dow Jones Industrial Average (DJI JIA) rose 82.71 points, or 0.6%, to 13,034.49, with Travelers Cos. Inc. (NYSE:TRV) among its risers after the insurer estimated losses from superstorm Sandy.


The S&P 500 index (SNC:SPX) climbed 2.23 points, or 0.2%, to 1,409.28, with utilities the best performing and technology hardest hit of its 10 major sectors.


Leading gains on the S&P 500, Western Digital Corp. (NASDAQ:WDC) shares rose 7.3% after the hard-disk manufacturer became the latest company to announce an accelerated dividend.