MARKET ROUNDUP (Source Bloomberg)

S&P 500 Advances to 2-Month High Amid Optimism on Budget; amid signs of progress in efforts by President Barack Obama and Republicans to reach agreement on a new budget in Washington. The S&P 500 rose 1.2 percent to 1,446.79 at 4 p.m. in New York. It has gained 15 percent so far in 2012. The Dow Jones Industrial Average added 115.57 points, or 0.9 percent, to 13,350.96 today. About 7.4 billion shares changed hands on U.S. exchanges, 20 percent above the three-month average. The S&P 500 sank as much as 7.7 percent from its 2012 high in September as Obama's re-election set up a budget showdown with the Republican-controlled House of Representatives. The benchmark gauge has climbed 6.9 percent since its November low amid optimism a compromise will be reached to avoid more than $600 billion in automatic tax increases and spending cuts.

European Stocks Rise Amid U.S. Budget Optimism; as U.S. President Barack Obama changed his position on tax increases, leading to optimism that Democrats and Republicans will agree on a compromise budget. The U.K.'s FTSE 100 gained 0.4 percent and Germany's DAX added 0.6 percent. France's CAC 40 rose 0.3 percent.

Oil Rises a Third Day on Signs of Progress in U.S. Budget; avoiding automatic spending cuts and tax increases next year. Futures rose 0.8 percent after President Barack Obama made a new offer on revenue and House Speaker John Boehner ended his opposition to boosting tax rates for some top earners, increasing optimism that the changes, the so-called fiscal cliff, won't happen. A report tomorrow will show that oil stockpiles dropped, according to a Bloomberg survey. Crude oil for January delivery advanced 73 cents to $87.93 a barrel on the New York Mercantile Exchange, the highest settlement since Dec. 4. The January contract expires tomorrow. The more-actively traded February future rose 73 cents to settle at $88.40. Prices were little changed after the American Petroleum Institute reported U.S. oil supplies fell 4.1 million barrels to 371.7 million last week. The January contract traded at $88.97 a barrel at 4:33 p.m. the same as before the report's release.

Source: Jupiter Securities Research - 19 December 2012