Markets Advance As Government Inches Closer To Debt Deal

Reports that the government was inching closer to a deal to lower spending while raising the debt limit lifted the markets higher during the midday with the Dow soaring 103 points to 12,037. Nasdaq climbed 24 points to 2677.

On the upside

Hedge fund AYM Capital recently acquired shares of transportation services firm YRC Worldwide (Nasdaq: YRCW).

Goldman Sachs analyst Catherine Leung upgraded Sina (Nasdaq: SINA) from a Sell rating to a Neutral rating.

Shares of Bank of America (NYSE: BAC), Citigroup (NYSE: C) and Wells Fargo (NYSE: WFC) all rose on reports that global regulators will increase capitalization requirements in order to stabilize banking systems.

On the downside

A Barron's article said that mortgage insurers MGIC Investment (NYSE: MTG), PMI Group (NYSE: PMI) and Radian Group (NYSE: RDN) will be unable to meet default claims.

Shares of Zhongpin (Nasdaq: HOGS) dropped ahead of its presentation at the Oppenheimner 11th Annual Consumer Conference in Boston onJune 28 and 29.

A Seeking Alpha article warned that Hampton Roads Bankshares (Nasdaq: HMPR) was overpriced due for a correction.

In the broad market, advancing issues outpaced decliners by a margin of nearly 5 to 3 on the NYSE and by nearly 3 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks rose 3 points to 801.