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Senatorial dealmaking stokes rally

Monday, October 14, 2013 - 02:13

Oct. 14 - Summary: Wall Street reverses drop to end higher as Senate leadership work on shutdown, deal debt; Netflix soars on cable TV talk; Facebook buys Israeli app start up; Yahoo casts net for wider ad sales. Conway G. Gittens reports.

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Investors start the week with hope. Senate leaders are working on a deal to fund the government until January and extend the $16.7 trillion debt ceiling into next year, according to Senate aides. Such a plan has to been approved by both parties in both houses. Steve Bell is a veteran of budget battles and now is at the Bipartisan Policy Center. SOUNDBITE: STEVE BELL, SENIOR DIRECTOR, BIPARTISAN POLICY CENTER (ENGLISH) SAYING: "People ought to know Senate Republicans have irritated House Republicans now to a pretty substantial degree and so on top of everything else we have that. I think we will probably get an outlines of a pretty good deal by Thursday but I do think it's going to be hard to get it done much before next Monday." Investor hope focused even the more on a postponed meeting between the White House and top leaders from the House and the Senate - giving the Senate more time to come up with a deal. Stocks ditched their losses by the end of the session, but keep in mind trading was thin due to a partial holiday with the bond market closed. Netflix is talking with several cable TV operators including Comcast, the largest U.S. cable outfit, according to the Wall Street Journal. The talks center around a Netflix app becoming part of set-top boxes, much like a deal Netflix was able to work out with European companies a month ago using TiVo hardware. Analysts say despite cable's worries about customers cutting the cord and using Netflix, more of these hook-ups will likely get done. Shares of Netflix rallied almost 8 percent. Yahoo is focusing attention on getting those ad dollars. Company executives have been on fire over the past six months going after potential advertisers in a big way, according to ad agency executives. Those efforts are not expected to show any benefits when Yahoo reports on Tuesday. Shares of the Internet company were down ahead of third quarter earnings. Facebook is acquiring an Israeli-based start-up app maker called Onavo. The deal is worth about $150 to $200 million according to a financial news website - giving Facebook access to mobile data analytics. European stocks were little changed as investors weighed weakness in the tech sector against optimism of an end to the U.S. debt battle.

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Senatorial dealmaking stokes rally

Monday, October 14, 2013 - 02:13