'Your papers, please' must never be heard in America
Independent voices from the TWT Communities
Materials and energy companies led the stock market higher Tuesday, sending the Dow Jones industrial average to its second all-time high in a week.
Stocks edged higher Monday on Wall Street after a strong sales report from McDonald's offset concerns about the surprise resignation of Italy's prime minister. Investors also waited for developments in crucial U.S. budget talks.
U.S. stocks closed higher, recording one of their best days in an otherwise dreary month.
The Dow Jones industrial average lost almost 250 points after the special committee of Congress assigned to come up with $1.2 trillion in deficit cuts over 10 years indicated that there would be no deal.
The markets were not surprised that the congressional supercommittee admitted defeat in efforts Monday to reach a deal to cut the federal budget deficit. But since summer, investors have sold at the first hint of trouble.
Stocks surged to their highest level in five months Tuesday after a measure of the most important driver of the U.S. economy surged ahead in September, a hopeful sign for the country's main source of employment.
"You're seeing some pretty decent action in the overall market, with today's leadership coming from the basic materials sector," said Robert Pavlik, chief market strategist at Banyan Partners. "It's an area of the market that does represent some value because it's underperformed."