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AAPL, CAT, HD, GSPF

Gains in Apple Inc NASDAQ:AAPL helped lift the NAS. The stock rose 4.4% to 531.85, lifting the S&P information technology sector index .GSPT up 1.9 percent. For the year so far, Apple is up 31.3 percent.

The DJIA was boosted by Caterpillar Inc NYSE:CAT and Home Depot NYSE:HD, both up more than 1%. In late afternoon trading, Caterpillar shot up nearly 3 percent to $86.35.

DJIA 13104.14+166.03 (1.28%) NAS 3019.51+59.20 (2.00%) S&P 5001426.19+23.76 (1.69%)
US stocks closed up Monday in a choppy session after comments from US President Obama that suggested a deal on the Fiscal Cliff was in the offing.

The S&P 500 rose above 1% after Obama said it appeared a deal was within sight, but quickly cut some gains when the president noted an agreement was not complete yet. With just an hour left in the final session of Y 2012, though, the S&P 500 resumed its climb and ran up above 1%.

A source familiar with the matter said an emerging deal, if adopted by Congress and President Obama, would raise $600-B in revenue over the next 10 yrs by increasing tax rates for individuals making more than $400,000 and households earning above $450,000 annually.

A plan is needed in order to avert a combination of tax hikes and spending cuts that many believe could push the US economy into recession.

The gains snapped the S&P 500 5 day losing streak, its longest September.

The S&P 500 is now up 13.1% on the year, compared with a flat performance in Y 2011. The DJIA is + 7% and the NAS is up 15.9%.

US Bank stocks rose after a NY-Times report that US regulators are nearing a $10-B settlement with several banks that would end the government’s efforts to hold lenders responsible for faulty foreclosure practices.

Financial stocks were among the strongest of the year, with the S&P financial index .GSPF surging 25.2% for Y 2012 so far. Bank of America is the top-performing DJIA component, with its stock price more than doubling over the past 12 months.

European Markets saw Strong Overall Performance: despite continued uncertainty and ongoing debt problems, broad Euro region equity averages returned more than 15% on the year.

Asian Region Fared Well With Strength in India +31%, Japan +22%) and Hong Kong +23%)

Looking Ahead to Y 2013; 2013 is loaded with potential to be a fundamentally disappointing year. That might not translate directly in terms of stock market returns given the US Fed’s influence, but investors should take care to manage against downside risk.
US Major Market Indexes Technical Analysis
Date Symbol Price Technical Analysis Support Resistance
31 Dec 2012 QQQ 65.19 Neutral (0.17) 64.99 65.86
31 Dec 2012 DIA 130.14 Neutral (-0.01) 129.92 130.70
31 Dec 2012 SPY 142.07 Neutral (0.24) 141.12 142.36