U.S. Stocks Rise as Boehner Says Talks Were Constructive (Bloomberg)
U.S. stocks rose, erasing earlier losses, as House Speaker John Boehner said he had constructive talks with President Barack Obama on the budget and would accept government revenue increases coupled with spending cuts. “Any tidbit of hope on the fiscal cliff front would lead to a positive response,” said Walter “Bucky” Hellwig, who helps manage $17 billion of assets at BB&T Wealth Management in Birmingham, Alabama. “Because of the oversold condition of the market, any good news is going to cause a pop. Conversely, anything that’s viewed as negative in the negotiations is going to cause a downward move.”
Geithner Says Budget Deal Can Be Reached Within Weeks (Bloomberg)
Treasury Secretary Timothy F. Geithner said he is optimistic a deal on averting the fiscal cliff could be reached within weeks after talks today between President Barack Obama and congressional leaders. Geithner said that the fiscal cliff is creating a “huge cloud of uncertainty” for the economy that is harming consumer confidence. Asked if the cliff threatens to curb spending during the Christmas shopping season, he said: “You’d want to do it as soon as you can.”
Twinkies Maker Hostess Plans To Go Out of Business (Reuters)
Hostess Brands Inc, the bankrupt maker of Twinkies snack cakes and loaves of Wonder Bread, is seeking a U.S. court’s permission to go out of business after failing to get wage and benefit cuts from thousands of its striking bakery workers. The 82-year-old Hostess, which has about $2.5 billion in sales and is one of the largest wholesale bakers and distributors of breads and snack cakes in the United States, filed the request with the U.S. Bankruptcy Court in New York early Friday morning. A hearing on the matter is set for Monday.