* Republicans say revenue is on the table in fiscal cliff
* Stocks turn higher but still on track for weekly decline
* Dell shares decline as profit slides 47 percent
* Indexes up: Dow 0.3 pct, S&P 0.4 pct, Nasdaq 0.3 pct
By Angela Moon
NEW YORK, Nov 16 U.S. 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 U.S. stock indexes 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 tip the economy
"To show our seriousness, we've put revenue on the table as
long as it's accompanied by significant spending cuts," Boehner
told reporters at the White House.
Republican Senate Minority Leader Mitch McConnell also
offered conditional backing for new revenue but said reforms to
social safety net programs are also necessary.
"I would call this a PR stunt, but just the fact that people
are reacting to it this positively shows that the market is
oversold and is seeking a reason to rally," said James Dailey,
portfolio manager at TEAM Asset Strategy Fund in Harrisburg,
"If we fail to hold onto (gains) and hit new lows later
today, then that will definitely be very alarming."
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
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.
Shares of Penn National Gaming Inc jumped 30
percent to $48.65 after the owner of gaming and pari-mutuel
properties said late Thursday it will split its business into
two separate publicly traded companies - a gaming focused real
estate investment trust and a gaming operator.
Sears Holdings Corp late Thursday reported a
quarterly loss that was narrower than expected, but same-store
sales fell on weak demand for electronics, sending shares down
16.7 percent to $48.72.
J.M. Smucker Co reported a rise in second-quarter
earnings, helped by a drop in commodity costs, but the stock
fell 2.9 percent to $82.94.