NEW YORK - U.S. stocks rose, with the Standard & Poor’s 500 Index trimming its weekly decline, as optimism grew that the lawmakers would reach a deal to end the budget impasse and avoid a default on the federal debt.
Visa Inc. rose 0.8 percent after a judge ruled the company didn’t infringe a SmartMetric Inc. patent. Facebook Inc. climbed 2 percent after the operator of the world’s most popular social network said it will sell advertising on its Instagram photo service. Union Pacific Corp. declined 1 percent after its earnings forecast missed analysts’ projections.
The S&P 500 climbed 0.3 percent to 1,683.49 at 11:20 a.m. in New York, paring an earlier gain of as much as 0.5 percent. The Dow Jones Industrial Average added 21.03 points, or 0.1 percent, to 15,017.51. Trading in S&P 500 stocks was 11 percent below the 30-day average at this time of day.
“There’s a working presumption that this is fundamentally theater and it’s going to work itself out favorably,” Mackintosh Pulsifer, vice chairman and chief investment officer of Fiduciary Trust Co. International in New York, said in a phone interview. He helps oversee $15 billion. “There will not be a default, we’ll find some way to raise the debt ceiling, and government workers will go back to work. In a few weeks it’s not going to have any impact.”
The S&P 500 has fallen 0.5 percent this week as the first partial government shutdown in 17 years began on Oct. 1, placing as many as 800,000 federal employees on unpaid leave and closing some services.
House Speaker John Boehner reiterated today that he won’t allow the U.S. to default on its debt, even if that requires Democratic votes as House Republicans met in Washington to find a solution to the budget impasse.