Stocks Rise Sharply on Fiscal Deal Optimism

U.S. stocks opened higher on Wednesday amid cautious optimism that U.S. politicians would strike a last-minute deal to prevent the country from defaulting on its debt. The Dow Jones Industrial Average lately rose 87.79 points, or 0.58%, to 15,255.80. The S&P 500 index climbed 9.93 points, or 0.58%, to 1,707.99. The Nasdaq Composite gained 22.27
points, or 0.59%, to 3,816.28.

The U.S. Senate prepared for a last ditch effort on Wednesday to avoid a historic lapse in
the government’s borrowing authority, a breach that President Barack Obama has said could
lead to default and deliver a damaging blow to the global economy.

Apple Inc has told manufacturers of its new iPhone 5C that it will cut orders of the
smartphone for the final three months of the year, a source familiar with the supply chain
situation said.

Bank of America Corp (BAC) on Wednesday posted a quarterly shareholder profit of $2.22
billion, reversing a year-earlier loss, as fewer loans went bad.

Advance Auto Parts Inc. said Wednesday it is buying General Parts International Inc. for
$2.04 billion in cash, which the companies say will create the biggest automotive
replacement parts provider in North America.

PepsiCo Inc. reported a higher-than-expected profit for its third quarter, as stronger
sales of its Frito-Lay snacks helped offset weaker results in its North American beverage
unit. For its third quarter, PepsiCo earned $1.91 billion, or $1.23 per share. That
compares with $1.9 billion, or $1.21 per share, a year ago.