* Senate leaders say deal near on budget, debt limit
* Agreement still one or two days away -equities exec
* Trading volume low with bond market closed for Columbus
* Netflix shares soar, boosting Nasdaq; Expedia plummets
* Indexes up: Dow 0.3 pct, S&P 0.3 pct, Nasdaq 0.5 pct
By Ryan Vlastelica
NEW YORK, Oct 14 U.S. stocks rose in a volatile
session on Monday, reversing earlier losses on hopes that there
would soon be a deal to end the gridlock in Washington over a
budget and increasing the U.S. debt limit.
President Barack Obama was scheduled to meet with several
congressional leaders, and while the White House said the
meeting had been delayed, signs of negotiations were taken as a
positive by the market.
Senate Majority Leader Harry Reid and Senate Republican
leader Mitch McConnell, who began talks on Saturday, appeared
together on the Senate floor and expressed optimism a deal could
be made final within days.
Stocks had dipped after weekend talks failed to reach a
solution that would reopen the federal government and raise the
$16.7 trillion federal borrowing limit by Oct. 17. Failure to
raise the debt ceiling could leave the world's biggest economy
unable to pay its bills in the coming weeks.
"Bringing everyone together was enough to get us to come
back after opening quite a bit lower, but we're still very much
under the assumption that we're at an impasse," said Ralph
Bassett, deputy head of North American equities at Aberdeen
Asset Management in Philadelphia.
"We expect there will be an agreement in the next day or so,
but there's a lot of fear."
In addition to the debt ceiling, the government shutdown,
entering its third week, was seen as a drag on the economy by
shaving a small percentage off the GDP with each passing day.
In a sign of the market's caution, the CBOE Volatility index
, which typically trades inversely to the S&P 500, rose
1.7 percent. Trading volume was also low, although that was
partially related to the Columbus Day holiday, with banks and
the U.S. bond market closed.
The Dow Jones industrial average was up 42.41 points,
or 0.28 percent, at 15,279.52. The Standard & Poor's 500 Index
was up 4.55 points, or 0.27 percent, at 1,707.75. The
Nasdaq Composite Index was up 18.52 points, or 0.49
percent, at 3,810.39.
Investors are also looking ahead to corporate earnings this
week, with results from Citigroup Inc, Coca-Cola Co
, Johnson & Johnson, and Intel Corp on
tap. Market participants are looking to see what kind of impact
the issues in Washington have had on results and forecasts.
With 6 percent of S&P 500 companies having reported, 55
percent have topped profit expectations, a rate below the
"Earnings have been mixed at best, with revenue growth
especially tepid," said Bassett, who helps oversee $312 billion
in assets. "By and large, we're focused on companies where
earnings growth isn't dependent on GDP being at a certain rate."
Shares of Netflix Inc rose 5.5 percent to $317.38,
as the S&P's top gainer, after the Wall Street Journal reported
that the company is in talks with several U.S. cable television
companies, including Comcast Corp and Suddenlink
Communications, to make its streaming video service
available through their set-top boxes.
On the downside, Expedia Inc plunged 6.6 percent to
$48.31 after Deutsche Bank downgraded it to "hold" from "buy."
Shares of washing machine manufacturer Whirlpool
were down 5.6 to $132.50. A note from Cleveland Research pointed
to softening demand for appliances.