Market set for strong weekly gain after lawmakers avoid cliff

theflyonthewall.com

Stocks surged this week after Congress passed a law that enabled the country to avert the fiscal cliff for now. The deal increased taxes on dividends and capital gains by relatively small amounts, but pushed off the debate on the debt ceiling and sequestration... MACRO NEWS: Congress passed and the president signed a bill that averted the fiscal cliff for at least a couple of months. The Fed, however, rattled investors a bit after the central bank's minutes revealed that several Fed members want it to slow or stop asset purchases later this year... The U.S. economy added 155,000 non-farm jobs last month, roughly in-line with economists' estimates... HSBC's December purchasing managers' index for China came in at 51.5, a 19 month high. The reading led to increased speculation that the Chinese economy is rebounding... COMPANY NEWS: The FTC concluded its investigation of Google's (GOOG) businesses practices and decided not to force the tech giant to make major changes to its search results. Google, however, will have to make it easier for its customers to advertise on other websites. In addition, companies will be able to prevent some of their content from appearing on Google's websites... Avis (CAR) bought Zipcar (ZIP) for $12.25 per share in cash, or about $500M... Transocean (RIG) announced that it would pay $1.4B as part of a settlement of its liability arising from the 2010 oil spill at BP's (BP) Macondo well.

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