Oct. 16 - Stocks rally with the S&P 500 approaching a record closing high after Senate leaders announce a deal that delays a government debt default. Conway G. Gittens reports.
It's the kind of news Wall Street was hoping for. Senate leader reached a deal to re-open the government through the beginning of next year, but more importantly, avoid a debt default that threatened to once again bring global markets to their knees. The debt ceiling delay is only through February but at least that removes an ominous cloud hanging over the markets and the economy. David Kotok of Cumberland Advisors sees a clear reason to buy stocks. SOUNDBITE: DAVID KOTOK, CHIEF INVESTMENT OFFICER, CUMBERLAND ADVISORS (ENGLISH) SAYING: "This fight is now about how much the Federal deficit shrinks. Whether it goes down $200 billion or $300 billion or $500 billion is now not relevant. It is now in a downward path. Slow growth. Low inflation. Low interest rates. Bullish. Stocks are going higher." Higher indeed. Stocks rallied over one percent bringing the S&P 500 less than 5 points away from setting an all-new record close. Markets settled before final votes in the House and the Senate.