Are you ready for…well, I don’t know what. But apparently something terribly awful will happen at midnight unless�Mitch McConnell and Joe Biden�manage to achieve what the entire political class has failed to do since the Nov. 6 elections and come up with a deal to avoid the fiscal cliff.
Then again, the fact that the Standard & Poor’s 500 index, Dow Jones Industrial Average and Nasdaq Composite index are all up this morning suggests that this isn’t quite the case.
Maybe the market has insights into the negotiations that we don’t, or maybe investors realize that it’s not really a fiscal cliff — more of a slope — and that there are at least a few more weeks left to reach a deal before the tax rises and spending cuts really kick in and start to hurt the economy.
The biggest gainer on the S&P 500 is Cliffs Natural Resources (CLF), which is up 5%. I wrote about Cliffs last week, and would only add that the stock is now up 30% in December. Also rising is department store chain Macy’s (M), up 3%.
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