Bloomberg News

U.S. Stocks Extend Gain as Obama Backs Deficit-Cutting Plan

July 19, 2011

July 19 (Bloomberg) -- U.S. stocks extended gains as President Barack Obama endorsed a bipartisan plan to cut the federal deficit, spurring optimism that lawmakers will reach an agreement that will help the nation avoid default.

The Standard & Poor’s 500 Index climbed 1.3 percent to 1,322.16 at 1:39 p.m. in New York. The Dow Jones Industrial Average rallied 173.47 points, or 1.4 percent, to 12,558.63.

Obama called the revival of the so-called Gang of Six proposal “good news” that may help negotiations on the deficit and the federal debt ceiling progress. The plan is “a very significant step,” Obama said in remarks at the White House.

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