US stocks rose on Friday after Republicans said their meeting with Democratic President Barack Obama about the "fiscal cliff" was constructive and that they were prepared to put higher revenue on the table if there were also significant spending cuts.
All three major US stock indices erased losses to turn higher following comments by Republican House Speaker John Boehner and others who discussed with Obama ways to avert sharp tax increases and spending cuts that would take effect next year. Analysts have said the fiscal cliff could tips the economy into recession.
Republican Senate Minority Leader Mitch McConnell also offered conditional backing for new revenue but said reforms to social safety net programs are also necessary. The Dow Jones industrial average was up 40.13 points, or 0.32 percent, at 12,582.51. The Standard & Poor's 500 Index was up 4.76 points, or 0.35 percent, at 1,358.09. The Nasdaq Composite Index was up 10.09 points, or 0.36 percent, at 2,847.02. The S&P is down 4.3 percent over the past two weeks, with such sectors as financials and materials among the hardest hit. The S&P and the Dow are currently down about 1.5 percent for the week while the Nasdaq is down about 2.2 percent. Dell Inc's stock slumped 7.8 percent to $8.81 and was the biggest percentage decliner on the S&P 500 a day after reporting a steep drop in its quarterly profit.