Stocks End Sharply Higher On Debt Deal

U.S. stocks closed more than 1% higher on Wednesday after Senate leaders said they
had a deal to reopen the federal government and raise the debt ceiling, avoiding
the threat of a debt default. The Dow Jones Industrial Average climbed 205.82
points, or 1.36%, to 15,373.83. The S&P 500 added 23.48 points, or 1.38%, to
1,721.54. The Nasdaq Composite climbed 45.42 points, or 1.20%, to 3,839.43.

Senate leaders on Wednesday announced a deal to reopen the government and raise the
nation’s borrowing limit, with the Treasury’s deadline for lifting the debt ceiling  just a day away. The deal would finance the federal government until Jan. 15, keeping “sequester” spending levels.

IBM Corp. (IBM) on Wednesday reported a third-quarter profit of $4.04 billion, or
$3.68 a share, compared with a profit of $3.8 billion, or $3.33 a share, for the
year-earlier period. Revenue was $23.7 billion, down from $24.7 billion.

EBay Inc. (EBAY) on Wednesday reported a third-quarter profit of $689 million, or
53 cents a share, on revenue of $3.9 billion. For its fourth-quarter, eBay forecast earnings, excluding one-time items, of 79 cents to 81 cents a share, on revenue in a range of $4.5 billion to $4.6 billion.

JPMorgan Chase & Co. has agreed to pay a $100 million penalty and admitted that its
traders acted “recklessly” during a series of London trades that ultimately cost
the bank $6 billion.