Stocks head higher as budget talks progress

AP News
Posted: Dec 17, 2012 11:52 AM

NEW YORK (AP) — Stocks are moving higher on Wall Street following signs of progress in the budget talks in Washington.

Indexes opened higher following news that House Speaker John Boehner made an offer to raise taxes on people making more than $1 million a year and to extend the government's borrowing cap.

The gains increased in late morning trading after Boehner went to the White House to meet with President Barack Obama.

The Dow Jones industrial average was up 89 points at 13,224 shortly before noon Monday.

The Standard & Poor's 500 index rose 13 to 1,426. The Nasdaq rose 27 points to 2,998.

Boehner made the offer Friday following a long standstill in negotiations. Just two weeks remain before tax increases and government spending cuts kick in if no deal is reached.