U.S. stocks rise on hopes for budget deal, Europe

Earlier, Asian markets rose more modestly.

The yield on the benchmark 10-year Treasury note rose to 1.61 percent from 1.58 percent late Friday, a sign that traders are selling low-risk investments. A bond’s yield rises as its price falls.

The market’s longer-term direction will likely hinge on U.S. leaders’ ability to attack the fiscal challenge between Thanksgiving and Christmas, Frederick said.

“If they can put some sort of a plan together, or make us believe they have a plan, or at least that there’s some cooperation going on there, that could be a real boost for the market,” he said.

Among big companies making news, Intel fell after its CEO of 40 years announced that he will retire in May. The stock rose 6 cents to $20.25.

Diamond Foods hit its lowest price since September 2006 after an analyst cut the snack food company’s rating and price target. Diamond restated two years’ worth of financial results last Wednesday, effectively wiping away $56.5 million in profit from its books. Diamond fell $1.79, or 11.8 percent, to $13.34.

Advanced Micro Devices Inc. rose after an analyst said that the stock could see an “early 2013 bounce.” He said investor concerns about the company’s solvency were overblown and caused traders to oversell. AMD rose 6 cents, or 3.2 percent, to $1.92.

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